Correlation Between OFG Bancorp and Ameris Bancorp
Can any of the company-specific risk be diversified away by investing in both OFG Bancorp and Ameris 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 OFG Bancorp and Ameris Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFG Bancorp and Ameris Bancorp, you can compare the effects of market volatilities on OFG Bancorp and Ameris 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 OFG Bancorp with a short position of Ameris Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFG Bancorp and Ameris Bancorp.
Diversification Opportunities for OFG Bancorp and Ameris Bancorp
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OFG and Ameris is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding OFG Bancorp and Ameris Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameris Bancorp and OFG 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 OFG Bancorp are associated (or correlated) with Ameris Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameris Bancorp has no effect on the direction of OFG Bancorp i.e., OFG Bancorp and Ameris Bancorp go up and down completely randomly.
Pair Corralation between OFG Bancorp and Ameris Bancorp
Considering the 90-day investment horizon OFG Bancorp is expected to generate 0.97 times more return on investment than Ameris Bancorp. However, OFG Bancorp is 1.04 times less risky than Ameris Bancorp. It trades about 0.22 of its potential returns per unit of risk. Ameris Bancorp is currently generating about 0.21 per unit of risk. If you would invest 4,063 in OFG Bancorp on August 28, 2024 and sell it today you would earn a total of 609.00 from holding OFG Bancorp or generate 14.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFG Bancorp vs. Ameris Bancorp
Performance |
| Timeline |
| OFG Bancorp |
| Ameris Bancorp |
OFG Bancorp and Ameris Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFG Bancorp and Ameris Bancorp
The main advantage of trading using opposite OFG Bancorp and Ameris Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFG Bancorp position performs unexpectedly, Ameris 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 Ameris Bancorp will offset losses from the drop in Ameris Bancorp's long position.| OFG Bancorp vs. Popular | OFG Bancorp vs. The First Bancshares, | OFG Bancorp vs. First Commonwealth Financial | OFG Bancorp vs. First Bancorp |
| Ameris Bancorp vs. Kearny Financial Corp | Ameris Bancorp vs. Bankwell Financial Group | Ameris Bancorp vs. Business First Bancshares | Ameris 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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