Correlation Between Northeast Community and Apollo Bancorp
Can any of the company-specific risk be diversified away by investing in both Northeast Community and Apollo 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 Northeast Community and Apollo Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northeast Community Bancorp and Apollo Bancorp, you can compare the effects of market volatilities on Northeast Community and Apollo 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 Northeast Community with a short position of Apollo Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northeast Community and Apollo Bancorp.
Diversification Opportunities for Northeast Community and Apollo Bancorp
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Northeast and Apollo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Northeast Community Bancorp and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and Northeast Community 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 Northeast Community Bancorp are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Northeast Community i.e., Northeast Community and Apollo Bancorp go up and down completely randomly.
Pair Corralation between Northeast Community and Apollo Bancorp
Given the investment horizon of 90 days Northeast Community Bancorp is expected to generate 8.52 times more return on investment than Apollo Bancorp. However, Northeast Community is 8.52 times more volatile than Apollo Bancorp. It trades about 0.29 of its potential returns per unit of risk. Apollo Bancorp is currently generating about 0.24 per unit of risk. If you would invest 2,614 in Northeast Community Bancorp on September 3, 2024 and sell it today you would earn a total of 401.00 from holding Northeast Community Bancorp or generate 15.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northeast Community Bancorp vs. Apollo Bancorp
Performance |
| Timeline |
| Northeast Community |
| Apollo Bancorp |
Northeast Community and Apollo Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northeast Community and Apollo Bancorp
The main advantage of trading using opposite Northeast Community and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northeast Community position performs unexpectedly, Apollo 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 Apollo Bancorp will offset losses from the drop in Apollo Bancorp's long position.| Northeast Community vs. Community West Bancshares | Northeast Community vs. First Financial Northwest | Northeast Community vs. First Capital | Northeast Community vs. HomeTrust Bancshares |
| Apollo Bancorp vs. First Hawaiian | Apollo Bancorp vs. Central Pacific Financial | Apollo Bancorp vs. Territorial Bancorp | Apollo Bancorp vs. Comerica |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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