Correlation Between Kearny Financial and Lakeland Bancorp
Can any of the company-specific risk be diversified away by investing in both Kearny Financial and Lakeland 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 Kearny Financial and Lakeland Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kearny Financial Corp and Lakeland Bancorp, you can compare the effects of market volatilities on Kearny Financial and Lakeland 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 Kearny Financial with a short position of Lakeland Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kearny Financial and Lakeland Bancorp.
Diversification Opportunities for Kearny Financial and Lakeland Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kearny and Lakeland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kearny Financial Corp and Lakeland Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Bancorp and Kearny Financial 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 Kearny Financial Corp are associated (or correlated) with Lakeland Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Bancorp has no effect on the direction of Kearny Financial i.e., Kearny Financial and Lakeland Bancorp go up and down completely randomly.
Pair Corralation between Kearny Financial and Lakeland Bancorp
If you would invest 694.00 in Kearny Financial Corp on November 9, 2024 and sell it today you would earn a total of 31.00 from holding Kearny Financial Corp or generate 4.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Kearny Financial Corp vs. Lakeland Bancorp
Performance |
| Timeline |
| Kearny Financial Corp |
| Lakeland Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Kearny Financial and Lakeland Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kearny Financial and Lakeland Bancorp
The main advantage of trading using opposite Kearny Financial and Lakeland Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kearny Financial position performs unexpectedly, Lakeland 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 Lakeland Bancorp will offset losses from the drop in Lakeland Bancorp's long position.| Kearny Financial vs. National Bank Holdings | Kearny Financial vs. Community West Bancshares | Kearny Financial vs. Financial Institutions | Kearny Financial vs. Heritage Financial |
| Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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