Correlation Between Origin Bancorp and Home Federal
Can any of the company-specific risk be diversified away by investing in both Origin Bancorp and Home Federal 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 Home Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Bancorp and Home Federal Bancorp, you can compare the effects of market volatilities on Origin Bancorp and Home Federal 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 Home Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Bancorp and Home Federal.
Diversification Opportunities for Origin Bancorp and Home Federal
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Origin and Home is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Origin Bancorp and Home Federal Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Federal 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 Home Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Federal Bancorp has no effect on the direction of Origin Bancorp i.e., Origin Bancorp and Home Federal go up and down completely randomly.
Pair Corralation between Origin Bancorp and Home Federal
If you would invest 1,216 in Home Federal Bancorp on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Home Federal Bancorp or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Origin Bancorp vs. Home Federal Bancorp
Performance |
| Timeline |
| Origin Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Home Federal Bancorp |
Origin Bancorp and Home Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Bancorp and Home Federal
The main advantage of trading using opposite Origin Bancorp and Home Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Bancorp position performs unexpectedly, Home Federal 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 Home Federal will offset losses from the drop in Home Federal'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 |
| Home Federal vs. Affinity Bancshares | Home Federal vs. Southern California Bancorp | Home Federal vs. Auburn National Bancorporation | Home Federal vs. BayCom Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |