Correlation Between Origin Bancorp and Lake Shore
Can any of the company-specific risk be diversified away by investing in both Origin Bancorp and Lake Shore 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 Lake Shore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Origin Bancorp and Lake Shore Bancorp, you can compare the effects of market volatilities on Origin Bancorp and Lake Shore 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 Lake Shore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Origin Bancorp and Lake Shore.
Diversification Opportunities for Origin Bancorp and Lake Shore
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Origin and Lake is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Origin Bancorp and Lake Shore Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lake Shore 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 Lake Shore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lake Shore Bancorp has no effect on the direction of Origin Bancorp i.e., Origin Bancorp and Lake Shore go up and down completely randomly.
Pair Corralation between Origin Bancorp and Lake Shore
If you would invest 1,319 in Lake Shore Bancorp on September 1, 2024 and sell it today you would earn a total of 27.00 from holding Lake Shore Bancorp or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Origin Bancorp vs. Lake Shore Bancorp
Performance |
| Timeline |
| Origin Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lake Shore Bancorp |
Origin Bancorp and Lake Shore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Origin Bancorp and Lake Shore
The main advantage of trading using opposite Origin Bancorp and Lake Shore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Origin Bancorp position performs unexpectedly, Lake Shore 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 Lake Shore will offset losses from the drop in Lake Shore'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 |
| Lake Shore vs. Affinity Bancshares | Lake Shore vs. Southern California Bancorp | Lake Shore vs. Auburn National Bancorporation | Lake Shore 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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