Correlation Between Lakeland Bancorp and Kearny Financial
Can any of the company-specific risk be diversified away by investing in both Lakeland Bancorp and Kearny Financial 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 Kearny Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Bancorp and Kearny Financial Corp, you can compare the effects of market volatilities on Lakeland Bancorp and Kearny Financial 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 Kearny Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Bancorp and Kearny Financial.
Diversification Opportunities for Lakeland Bancorp and Kearny Financial
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lakeland and Kearny is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Bancorp and Kearny Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kearny Financial Corp 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 Kearny Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kearny Financial Corp has no effect on the direction of Lakeland Bancorp i.e., Lakeland Bancorp and Kearny Financial go up and down completely randomly.
Pair Corralation between Lakeland Bancorp and Kearny Financial
If you would invest 688.00 in Kearny Financial Corp on August 29, 2024 and sell it today you would earn a total of 119.00 from holding Kearny Financial Corp or generate 17.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Lakeland Bancorp vs. Kearny Financial Corp
Performance |
| Timeline |
| Lakeland Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kearny Financial Corp |
Lakeland Bancorp and Kearny Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Bancorp and Kearny Financial
The main advantage of trading using opposite Lakeland Bancorp and Kearny Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Bancorp position performs unexpectedly, Kearny Financial 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 Kearny Financial will offset losses from the drop in Kearny Financial's long position.| Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland Bancorp vs. LINKBANCORP |
| Kearny Financial vs. National Bank Holdings | Kearny Financial vs. Community West Bancshares | Kearny Financial vs. Financial Institutions | Kearny Financial vs. Heritage Financial |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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