Correlation Between Origin Bancorp and Finward Bancorp
Can any of the company-specific risk be diversified away by investing in both Origin Bancorp and Finward 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 Origin Bancorp and Finward Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Bancorp and Finward Bancorp, you can compare the effects of market volatilities on Origin Bancorp and Finward 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 Origin Bancorp with a short position of Finward Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Bancorp and Finward Bancorp.
Diversification Opportunities for Origin Bancorp and Finward Bancorp
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Origin and Finward is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Origin Bancorp and Finward Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finward Bancorp and Origin Bancorp 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 Origin Bancorp are associated (or correlated) with Finward Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finward Bancorp has no effect on the direction of Origin Bancorp i.e., Origin Bancorp and Finward Bancorp go up and down completely randomly.
Pair Corralation between Origin Bancorp and Finward Bancorp
If you would invest 2,861 in Origin Bancorp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Origin Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Origin Bancorp vs. Finward Bancorp
Performance |
| Timeline |
| Origin Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Finward Bancorp |
Origin Bancorp and Finward Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Bancorp and Finward Bancorp
The main advantage of trading using opposite Origin Bancorp and Finward Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Bancorp position performs unexpectedly, Finward 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 Finward Bancorp will offset losses from the drop in Finward Bancorp's long position.| Origin Bancorp vs. Home Federal Bancorp | Origin Bancorp vs. First Financial Northwest | Origin Bancorp vs. First Northwest Bancorp | Origin Bancorp vs. First Capital |
| Finward Bancorp vs. Community West Bancshares | Finward Bancorp vs. First Financial Northwest | Finward Bancorp vs. Oak Valley Bancorp | Finward Bancorp vs. Home Federal 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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