Correlation Between LINKBANCORP and Salisbury Bancorp
Can any of the company-specific risk be diversified away by investing in both LINKBANCORP and Salisbury 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 LINKBANCORP and Salisbury Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LINKBANCORP and Salisbury Bancorp, you can compare the effects of market volatilities on LINKBANCORP and Salisbury 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 LINKBANCORP with a short position of Salisbury Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of LINKBANCORP and Salisbury Bancorp.
Diversification Opportunities for LINKBANCORP and Salisbury Bancorp
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LINKBANCORP and Salisbury is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding LINKBANCORP and Salisbury Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salisbury Bancorp and LINKBANCORP 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 LINKBANCORP are associated (or correlated) with Salisbury Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salisbury Bancorp has no effect on the direction of LINKBANCORP i.e., LINKBANCORP and Salisbury Bancorp go up and down completely randomly.
Pair Corralation between LINKBANCORP and Salisbury Bancorp
If you would invest 640.00 in LINKBANCORP on August 25, 2024 and sell it today you would earn a total of 118.00 from holding LINKBANCORP or generate 18.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
LINKBANCORP vs. Salisbury Bancorp
Performance |
| Timeline |
| LINKBANCORP |
| Salisbury Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LINKBANCORP and Salisbury Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LINKBANCORP and Salisbury Bancorp
The main advantage of trading using opposite LINKBANCORP and Salisbury Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LINKBANCORP position performs unexpectedly, Salisbury 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 Salisbury Bancorp will offset losses from the drop in Salisbury Bancorp's long position.| LINKBANCORP vs. Home Federal Bancorp | LINKBANCORP vs. Lake Shore Bancorp | LINKBANCORP vs. Community West Bancshares | LINKBANCORP vs. Magyar Bancorp |
| Salisbury Bancorp vs. Home Federal Bancorp | Salisbury Bancorp vs. First Northwest Bancorp | Salisbury Bancorp vs. National Bank Holdings | Salisbury Bancorp vs. Community Bank System |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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