Correlation Between Kentucky First and High Country
Can any of the company-specific risk be diversified away by investing in both Kentucky First and High Country 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 Kentucky First and High Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kentucky First Federal and High Country Bancorp, you can compare the effects of market volatilities on Kentucky First and High Country 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 Kentucky First with a short position of High Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kentucky First and High Country.
Diversification Opportunities for Kentucky First and High Country
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kentucky and High is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kentucky First Federal and High Country Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Country Bancorp and Kentucky First 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 Kentucky First Federal are associated (or correlated) with High Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Country Bancorp has no effect on the direction of Kentucky First i.e., Kentucky First and High Country go up and down completely randomly.
Pair Corralation between Kentucky First and High Country
If you would invest 3,800 in High Country Bancorp on September 4, 2024 and sell it today you would earn a total of 0.00 from holding High Country Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.41% |
| Values | Daily Returns |
Kentucky First Federal vs. High Country Bancorp
Performance |
| Timeline |
| Kentucky First Federal |
| High Country Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kentucky First and High Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kentucky First and High Country
The main advantage of trading using opposite Kentucky First and High Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kentucky First position performs unexpectedly, High Country 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 High Country will offset losses from the drop in High Country's long position.| Kentucky First vs. Home Federal Bancorp | Kentucky First vs. Lake Shore Bancorp | Kentucky First vs. Commerzbank AG | Kentucky First vs. Investar Holding Corp |
| High Country vs. Kentucky First Federal | High Country vs. Farmers And Merchants | High Country vs. First Keystone Corp | High Country vs. Citizens Financial Services |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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