Correlation Between Jack Henry and Westamerica Bancorporation
Can any of the company-specific risk be diversified away by investing in both Jack Henry and Westamerica Bancorporation 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 Jack Henry and Westamerica Bancorporation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack Henry Associates and Westamerica Bancorporation, you can compare the effects of market volatilities on Jack Henry and Westamerica Bancorporation 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 Jack Henry with a short position of Westamerica Bancorporation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack Henry and Westamerica Bancorporation.
Diversification Opportunities for Jack Henry and Westamerica Bancorporation
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jack and Westamerica is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jack Henry Associates and Westamerica Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westamerica Bancorporation and Jack Henry 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 Jack Henry Associates are associated (or correlated) with Westamerica Bancorporation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westamerica Bancorporation has no effect on the direction of Jack Henry i.e., Jack Henry and Westamerica Bancorporation go up and down completely randomly.
Pair Corralation between Jack Henry and Westamerica Bancorporation
Given the investment horizon of 90 days Jack Henry Associates is expected to generate 0.66 times more return on investment than Westamerica Bancorporation. However, Jack Henry Associates is 1.51 times less risky than Westamerica Bancorporation. It trades about -0.02 of its potential returns per unit of risk. Westamerica Bancorporation is currently generating about -0.03 per unit of risk. If you would invest 17,530 in Jack Henry Associates on November 1, 2024 and sell it today you would lose (96.00) from holding Jack Henry Associates or give up 0.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jack Henry Associates vs. Westamerica Bancorp.
Performance |
| Timeline |
| Jack Henry Associates |
| Westamerica Bancorporation |
Jack Henry and Westamerica Bancorporation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack Henry and Westamerica Bancorporation
The main advantage of trading using opposite Jack Henry and Westamerica Bancorporation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack Henry position performs unexpectedly, Westamerica Bancorporation 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 Westamerica Bancorporation will offset losses from the drop in Westamerica Bancorporation's long position.| Jack Henry vs. CACI International | Jack Henry vs. CDW Corp | Jack Henry vs. Broadridge Financial Solutions | Jack Henry vs. ExlService Holdings |
| Westamerica Bancorporation vs. Heritage Commerce Corp | Westamerica Bancorporation vs. Heritage Financial | Westamerica Bancorporation vs. Penns Woods Bancorp | Westamerica Bancorporation vs. 1st Source |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |