Correlation Between Logan Ridge and Auburn Bancorp
Can any of the company-specific risk be diversified away by investing in both Logan Ridge and Auburn 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 Logan Ridge and Auburn Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Logan Ridge Finance and Auburn Bancorp, you can compare the effects of market volatilities on Logan Ridge and Auburn 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 Logan Ridge with a short position of Auburn Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Logan Ridge and Auburn Bancorp.
Diversification Opportunities for Logan Ridge and Auburn Bancorp
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Logan and Auburn is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Logan Ridge Finance and Auburn Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auburn Bancorp and Logan Ridge 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 Logan Ridge Finance are associated (or correlated) with Auburn Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auburn Bancorp has no effect on the direction of Logan Ridge i.e., Logan Ridge and Auburn Bancorp go up and down completely randomly.
Pair Corralation between Logan Ridge and Auburn Bancorp
Given the investment horizon of 90 days Logan Ridge Finance is expected to generate 0.76 times more return on investment than Auburn Bancorp. However, Logan Ridge Finance is 1.32 times less risky than Auburn Bancorp. It trades about 0.05 of its potential returns per unit of risk. Auburn Bancorp is currently generating about -0.03 per unit of risk. If you would invest 2,030 in Logan Ridge Finance on September 3, 2024 and sell it today you would earn a total of 570.00 from holding Logan Ridge Finance or generate 28.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Logan Ridge Finance vs. Auburn Bancorp
Performance |
| Timeline |
| Logan Ridge Finance |
| Auburn Bancorp |
Logan Ridge and Auburn Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Logan Ridge and Auburn Bancorp
The main advantage of trading using opposite Logan Ridge and Auburn Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Logan Ridge position performs unexpectedly, Auburn 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 Auburn Bancorp will offset losses from the drop in Auburn Bancorp's long position.| Logan Ridge vs. Badger Infrastructure Solutions | Logan Ridge vs. Portman Ridge Finance | Logan Ridge vs. Inotiv Inc | Logan Ridge vs. Phenixfin |
| Auburn Bancorp vs. Western Asset Global | Auburn Bancorp vs. Invesco Trust For | Auburn Bancorp vs. Logan Ridge Finance | Auburn Bancorp vs. Invesco Advantage MIT |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |