Correlation Between Investar Holding and HV Bancorp
Can any of the company-specific risk be diversified away by investing in both Investar Holding and HV Bancorp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Investar Holding and HV Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investar Holding Corp and HV Bancorp, you can compare the effects of market volatilities on Investar Holding and HV Bancorp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Investar Holding with a short position of HV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investar Holding and HV Bancorp.
Diversification Opportunities for Investar Holding and HV Bancorp
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investar and HVBC is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Investar Holding Corp and HV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HV Bancorp and Investar Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Investar Holding Corp are associated (or correlated) with HV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HV Bancorp has no effect on the direction of Investar Holding i.e., Investar Holding and HV Bancorp go up and down completely randomly.
Pair Corralation between Investar Holding and HV Bancorp
If you would invest 1,567 in Investar Holding Corp on August 24, 2024 and sell it today you would earn a total of 772.00 from holding Investar Holding Corp or generate 49.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Investar Holding Corp vs. HV Bancorp
Performance |
| Timeline |
| Investar Holding Corp |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Investar Holding and HV Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investar Holding and HV Bancorp
The main advantage of trading using opposite Investar Holding and HV Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investar Holding position performs unexpectedly, HV Bancorp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HV Bancorp will offset losses from the drop in HV Bancorp's long position.| Investar Holding vs. Magyar Bancorp | Investar Holding vs. Home Federal Bancorp | Investar Holding vs. Community West Bancshares | Investar Holding vs. First Northwest Bancorp |
| HV Bancorp vs. Magyar Bancorp | HV Bancorp vs. Home Federal Bancorp | HV Bancorp vs. Community West Bancshares | HV Bancorp vs. Lake Shore Bancorp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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