Correlation Between Luther Burbank and HV Bancorp
Can any of the company-specific risk be diversified away by investing in both Luther Burbank and HV 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 HV 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 HV Bancorp, you can compare the effects of market volatilities on Luther Burbank and HV 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 HV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luther Burbank and HV Bancorp.
Diversification Opportunities for Luther Burbank and HV Bancorp
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Luther and HVBC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Luther Burbank and HV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HV 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 HV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HV Bancorp has no effect on the direction of Luther Burbank i.e., Luther Burbank and HV Bancorp go up and down completely randomly.
Pair Corralation between Luther Burbank and HV Bancorp
If you would invest 3,460 in HV Bancorp on August 31, 2024 and sell it today you would earn a total of 0.00 from holding HV Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luther Burbank vs. HV Bancorp
Performance |
| Timeline |
| Luther Burbank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Luther Burbank and HV Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luther Burbank and HV Bancorp
The main advantage of trading using opposite Luther Burbank and HV Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luther Burbank position performs unexpectedly, HV 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 HV Bancorp will offset losses from the drop in HV 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 |
| HV Bancorp vs. Magyar Bancorp | HV Bancorp vs. Home Federal Bancorp | HV Bancorp vs. Community West Bancshares | HV Bancorp vs. Lake Shore 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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