Correlation Between Kish Bancorp and Peak Bancorp
Can any of the company-specific risk be diversified away by investing in both Kish Bancorp and Peak 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 Kish Bancorp and Peak Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kish Bancorp and Peak Bancorp, you can compare the effects of market volatilities on Kish Bancorp and Peak 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 Kish Bancorp with a short position of Peak Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kish Bancorp and Peak Bancorp.
Diversification Opportunities for Kish Bancorp and Peak Bancorp
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kish and Peak is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kish Bancorp and Peak Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peak Bancorp and Kish 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 Kish Bancorp are associated (or correlated) with Peak Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peak Bancorp has no effect on the direction of Kish Bancorp i.e., Kish Bancorp and Peak Bancorp go up and down completely randomly.
Pair Corralation between Kish Bancorp and Peak Bancorp
If you would invest 3,413 in Kish Bancorp on November 3, 2024 and sell it today you would earn a total of 87.00 from holding Kish Bancorp or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Kish Bancorp vs. Peak Bancorp
Performance |
| Timeline |
| Kish Bancorp |
| Peak Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Kish Bancorp and Peak Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kish Bancorp and Peak Bancorp
The main advantage of trading using opposite Kish Bancorp and Peak Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kish Bancorp position performs unexpectedly, Peak 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 Peak Bancorp will offset losses from the drop in Peak Bancorp's long position.| Kish Bancorp vs. CNB Corporation | Kish Bancorp vs. FNB Inc | Kish Bancorp vs. Community Bankers | Kish Bancorp vs. Apollo Bancorp |
| Peak Bancorp vs. MVB Financial Corp | Peak Bancorp vs. Finward Bancorp | Peak Bancorp vs. First Community | Peak Bancorp vs. LINKBANCORP |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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