Correlation Between Lakeland Bancorp and First Community
Can any of the company-specific risk be diversified away by investing in both Lakeland Bancorp and First Community 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 Lakeland Bancorp and First Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Bancorp and First Community, you can compare the effects of market volatilities on Lakeland Bancorp and First Community 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 Lakeland Bancorp with a short position of First Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Bancorp and First Community.
Diversification Opportunities for Lakeland Bancorp and First Community
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lakeland and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Bancorp and First Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Community and Lakeland 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 Lakeland Bancorp are associated (or correlated) with First Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Community has no effect on the direction of Lakeland Bancorp i.e., Lakeland Bancorp and First Community go up and down completely randomly.
Pair Corralation between Lakeland Bancorp and First Community
If you would invest (100.00) in Lakeland Bancorp on November 29, 2024 and sell it today you would earn a total of 100.00 from holding Lakeland Bancorp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lakeland Bancorp vs. First Community
Performance |
| Timeline |
| Lakeland Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| First Community |
Lakeland Bancorp and First Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Bancorp and First Community
The main advantage of trading using opposite Lakeland Bancorp and First Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Bancorp position performs unexpectedly, First Community 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 First Community will offset losses from the drop in First Community's long position.| Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland Bancorp vs. LINKBANCORP |
| First Community vs. Community West Bancshares | First Community vs. First Financial Northwest | First Community vs. First Northwest Bancorp | First Community 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |