Correlation Between NYSE Composite and Peoples Bancorp
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Peoples 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 NYSE Composite and Peoples Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Peoples Bancorp, you can compare the effects of market volatilities on NYSE Composite and Peoples 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 NYSE Composite with a short position of Peoples Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Peoples Bancorp.
Diversification Opportunities for NYSE Composite and Peoples Bancorp
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Peoples is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Peoples Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Bancorp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Peoples Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Bancorp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Peoples Bancorp go up and down completely randomly.
Pair Corralation between NYSE Composite and Peoples Bancorp
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.25 times less return on investment than Peoples Bancorp. But when comparing it to its historical volatility, NYSE Composite is 2.95 times less risky than Peoples Bancorp. It trades about 0.14 of its potential returns per unit of risk. Peoples Bancorp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,762 in Peoples Bancorp on August 24, 2024 and sell it today you would earn a total of 761.00 from holding Peoples Bancorp or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Peoples Bancorp
Performance |
| Timeline |
NYSE Composite and Peoples Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Peoples Bancorp
Pair trading matchups for Peoples Bancorp
Pair Trading with NYSE Composite and Peoples Bancorp
The main advantage of trading using opposite NYSE Composite and Peoples Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Peoples 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 Peoples Bancorp will offset losses from the drop in Peoples Bancorp's long position.| NYSE Composite vs. Awilco Drilling PLC | NYSE Composite vs. AKITA Drilling | NYSE Composite vs. SunOpta | NYSE Composite vs. Delek Drilling |
| Peoples Bancorp vs. Eagle Bancorp | Peoples Bancorp vs. Northrim BanCorp | Peoples Bancorp vs. United Bankshares | Peoples Bancorp vs. Pacific Premier 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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