Correlation Between Origin Bancorp and Heritage Financial
Can any of the company-specific risk be diversified away by investing in both Origin Bancorp and Heritage Financial 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 Heritage Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Bancorp and Heritage Financial, you can compare the effects of market volatilities on Origin Bancorp and Heritage Financial 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 Heritage Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Bancorp and Heritage Financial.
Diversification Opportunities for Origin Bancorp and Heritage Financial
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Origin and Heritage is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Origin Bancorp and Heritage Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heritage Financial 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 Heritage Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heritage Financial has no effect on the direction of Origin Bancorp i.e., Origin Bancorp and Heritage Financial go up and down completely randomly.
Pair Corralation between Origin Bancorp and Heritage Financial
If you would invest 2,277 in Heritage Financial on September 1, 2024 and sell it today you would earn a total of 368.00 from holding Heritage Financial or generate 16.16% 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. Heritage Financial
Performance |
| Timeline |
| Origin Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Heritage Financial |
Origin Bancorp and Heritage Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Bancorp and Heritage Financial
The main advantage of trading using opposite Origin Bancorp and Heritage Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Bancorp position performs unexpectedly, Heritage Financial 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 Heritage Financial will offset losses from the drop in Heritage Financial'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 |
| Heritage Financial vs. Heritage Commerce Corp | Heritage Financial vs. Horizon Bancorp | Heritage Financial vs. Heartland Financial USA | Heritage Financial vs. Independent Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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