Correlation Between Old Point and HMN Financial
Can any of the company-specific risk be diversified away by investing in both Old Point and HMN 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 Old Point and HMN Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Point Financial and HMN Financial, you can compare the effects of market volatilities on Old Point and HMN 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 Old Point with a short position of HMN Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Point and HMN Financial.
Diversification Opportunities for Old Point and HMN Financial
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Old and HMN is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Old Point Financial and HMN Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMN Financial and Old Point 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 Old Point Financial are associated (or correlated) with HMN Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMN Financial has no effect on the direction of Old Point i.e., Old Point and HMN Financial go up and down completely randomly.
Pair Corralation between Old Point and HMN Financial
If you would invest 2,041 in Old Point Financial on August 28, 2024 and sell it today you would earn a total of 141.00 from holding Old Point Financial or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Old Point Financial vs. HMN Financial
Performance |
| Timeline |
| Old Point Financial |
| HMN Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
Old Point and HMN Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Point and HMN Financial
The main advantage of trading using opposite Old Point and HMN Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Point position performs unexpectedly, HMN 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 HMN Financial will offset losses from the drop in HMN Financial's long position.| Old Point vs. Fifth Third Bancorp | Old Point vs. Huntington Bancshares Incorporated | Old Point vs. MT Bank |
| HMN Financial vs. Magyar Bancorp | HMN Financial vs. Home Federal Bancorp | HMN Financial vs. First Financial Northwest | HMN Financial vs. First Northwest 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |