Correlation Between Lakeland Bancorp and United Bankshares
Can any of the company-specific risk be diversified away by investing in both Lakeland Bancorp and United Bankshares 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 United Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Bancorp and United Bankshares, you can compare the effects of market volatilities on Lakeland Bancorp and United Bankshares 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 United Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Bancorp and United Bankshares.
Diversification Opportunities for Lakeland Bancorp and United Bankshares
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lakeland and United is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Bancorp and United Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Bankshares 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 United Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Bankshares has no effect on the direction of Lakeland Bancorp i.e., Lakeland Bancorp and United Bankshares go up and down completely randomly.
Pair Corralation between Lakeland Bancorp and United Bankshares
If you would invest 3,845 in United Bankshares on August 28, 2024 and sell it today you would earn a total of 484.00 from holding United Bankshares or generate 12.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lakeland Bancorp vs. United Bankshares
Performance |
| Timeline |
| Lakeland Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United Bankshares |
Lakeland Bancorp and United Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Bancorp and United Bankshares
The main advantage of trading using opposite Lakeland Bancorp and United Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Bancorp position performs unexpectedly, United Bankshares 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 United Bankshares will offset losses from the drop in United Bankshares' long position.| Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland Bancorp vs. LINKBANCORP |
| United Bankshares vs. Peoples Bancorp | United Bankshares vs. Eagle Bancorp | United Bankshares vs. Northrim BanCorp | United Bankshares vs. Pacific Premier 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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