Correlation Between Investar Holding and Peoples Bancorp
Can any of the company-specific risk be diversified away by investing in both Investar Holding and Peoples 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 Peoples 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 Peoples Bancorp of, you can compare the effects of market volatilities on Investar Holding and Peoples 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 Peoples Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investar Holding and Peoples Bancorp.
Diversification Opportunities for Investar Holding and Peoples Bancorp
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Investar and Peoples is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Investar Holding Corp and Peoples Bancorp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples 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 Peoples Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Bancorp has no effect on the direction of Investar Holding i.e., Investar Holding and Peoples Bancorp go up and down completely randomly.
Pair Corralation between Investar Holding and Peoples Bancorp
Given the investment horizon of 90 days Investar Holding Corp is expected to under-perform the Peoples Bancorp. But the stock apears to be less risky and, when comparing its historical volatility, Investar Holding Corp is 1.08 times less risky than Peoples Bancorp. The stock trades about -0.25 of its potential returns per unit of risk. The Peoples Bancorp of is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 3,101 in Peoples Bancorp of on November 3, 2024 and sell it today you would lose (201.00) from holding Peoples Bancorp of or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Investar Holding Corp vs. Peoples Bancorp of
Performance |
| Timeline |
| Investar Holding Corp |
| Peoples Bancorp |
Investar Holding and Peoples Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investar Holding and Peoples Bancorp
The main advantage of trading using opposite Investar Holding and Peoples Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investar Holding position performs unexpectedly, Peoples 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 Peoples Bancorp will offset losses from the drop in Peoples 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 |
| Peoples Bancorp vs. Home Federal Bancorp | Peoples Bancorp vs. Investar Holding Corp | Peoples Bancorp vs. Lake Shore Bancorp | Peoples Bancorp vs. Finward 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |