Correlation Between Luther Burbank and Affinity Bancshares
Can any of the company-specific risk be diversified away by investing in both Luther Burbank and Affinity Bancshares 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 Luther Burbank and Affinity Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luther Burbank and Affinity Bancshares, you can compare the effects of market volatilities on Luther Burbank and Affinity Bancshares 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 Luther Burbank with a short position of Affinity Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luther Burbank and Affinity Bancshares.
Diversification Opportunities for Luther Burbank and Affinity Bancshares
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luther and Affinity is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Luther Burbank and Affinity Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affinity Bancshares and Luther Burbank 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 Luther Burbank are associated (or correlated) with Affinity Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affinity Bancshares has no effect on the direction of Luther Burbank i.e., Luther Burbank and Affinity Bancshares go up and down completely randomly.
Pair Corralation between Luther Burbank and Affinity Bancshares
If you would invest 2,139 in Affinity Bancshares on August 30, 2024 and sell it today you would earn a total of 23.00 from holding Affinity Bancshares or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Luther Burbank vs. Affinity Bancshares
Performance |
| Timeline |
| Luther Burbank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Affinity Bancshares |
Luther Burbank and Affinity Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luther Burbank and Affinity Bancshares
The main advantage of trading using opposite Luther Burbank and Affinity Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luther Burbank position performs unexpectedly, Affinity Bancshares 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 Affinity Bancshares will offset losses from the drop in Affinity Bancshares' long position.| Luther Burbank vs. First Community | Luther Burbank vs. Community West Bancshares | Luther Burbank vs. First Financial Northwest | Luther Burbank vs. First Northwest Bancorp |
| Affinity Bancshares vs. SVB T Corp | Affinity Bancshares vs. First Capital | Affinity Bancshares vs. Pioneer Bankcorp | Affinity Bancshares vs. Liberty Northwest 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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