Correlation Between Jeffersonville Bancorp and Ottawa Savings
Can any of the company-specific risk be diversified away by investing in both Jeffersonville Bancorp and Ottawa Savings 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 Jeffersonville Bancorp and Ottawa Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffersonville Bancorp and Ottawa Savings Bancorp, you can compare the effects of market volatilities on Jeffersonville Bancorp and Ottawa Savings 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 Jeffersonville Bancorp with a short position of Ottawa Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffersonville Bancorp and Ottawa Savings.
Diversification Opportunities for Jeffersonville Bancorp and Ottawa Savings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jeffersonville and Ottawa is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Jeffersonville Bancorp and Ottawa Savings Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ottawa Savings Bancorp and Jeffersonville Bancorp 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 Jeffersonville Bancorp are associated (or correlated) with Ottawa Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ottawa Savings Bancorp has no effect on the direction of Jeffersonville Bancorp i.e., Jeffersonville Bancorp and Ottawa Savings go up and down completely randomly.
Pair Corralation between Jeffersonville Bancorp and Ottawa Savings
If you would invest 1,285 in Ottawa Savings Bancorp on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Ottawa Savings Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffersonville Bancorp vs. Ottawa Savings Bancorp
Performance |
| Timeline |
| Jeffersonville Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ottawa Savings Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jeffersonville Bancorp and Ottawa Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffersonville Bancorp and Ottawa Savings
The main advantage of trading using opposite Jeffersonville Bancorp and Ottawa Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffersonville Bancorp position performs unexpectedly, Ottawa Savings 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 Ottawa Savings will offset losses from the drop in Ottawa Savings' long position.| Jeffersonville Bancorp vs. Heritage NOLA Bancorp | Jeffersonville Bancorp vs. Rhinebeck Bancorp | Jeffersonville Bancorp vs. Bridgewater Bancshares Depositary | Jeffersonville Bancorp vs. Bank of Marin |
| Ottawa Savings vs. Lake Shore Bancorp | Ottawa Savings vs. IF Bancorp | Ottawa Savings vs. Home Federal 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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