Correlation Between Luther Burbank and Brookline Bancorp
Can any of the company-specific risk be diversified away by investing in both Luther Burbank and Brookline 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 Luther Burbank and Brookline Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luther Burbank and Brookline Bancorp, you can compare the effects of market volatilities on Luther Burbank and Brookline 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 Luther Burbank with a short position of Brookline Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luther Burbank and Brookline Bancorp.
Diversification Opportunities for Luther Burbank and Brookline Bancorp
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luther and Brookline is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Luther Burbank and Brookline Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brookline Bancorp 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 Brookline Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brookline Bancorp has no effect on the direction of Luther Burbank i.e., Luther Burbank and Brookline Bancorp go up and down completely randomly.
Pair Corralation between Luther Burbank and Brookline Bancorp
If you would invest 1,160 in Brookline Bancorp on November 3, 2024 and sell it today you would earn a total of 63.00 from holding Brookline Bancorp or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Luther Burbank vs. Brookline Bancorp
Performance |
| Timeline |
| Luther Burbank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Brookline Bancorp |
Luther Burbank and Brookline Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luther Burbank and Brookline Bancorp
The main advantage of trading using opposite Luther Burbank and Brookline Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luther Burbank position performs unexpectedly, Brookline 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 Brookline Bancorp will offset losses from the drop in Brookline Bancorp's 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 |
| Brookline Bancorp vs. Heritage Commerce Corp | Brookline Bancorp vs. Eastern Bankshares | Brookline Bancorp vs. HarborOne Bancorp | Brookline Bancorp vs. Kearny Financial Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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