Correlation Between Oregon Bancorp and National Capital
Can any of the company-specific risk be diversified away by investing in both Oregon Bancorp and National Capital 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 Oregon Bancorp and National Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oregon Bancorp and National Capital Bank, you can compare the effects of market volatilities on Oregon Bancorp and National Capital 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 Oregon Bancorp with a short position of National Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oregon Bancorp and National Capital.
Diversification Opportunities for Oregon Bancorp and National Capital
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Oregon and National is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Oregon Bancorp and National Capital Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Capital Bank and Oregon 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 Oregon Bancorp are associated (or correlated) with National Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Capital Bank has no effect on the direction of Oregon Bancorp i.e., Oregon Bancorp and National Capital go up and down completely randomly.
Pair Corralation between Oregon Bancorp and National Capital
Given the investment horizon of 90 days Oregon Bancorp is expected to generate 0.3 times more return on investment than National Capital. However, Oregon Bancorp is 3.29 times less risky than National Capital. It trades about -0.23 of its potential returns per unit of risk. National Capital Bank is currently generating about -0.17 per unit of risk. If you would invest 2,380 in Oregon Bancorp on October 12, 2024 and sell it today you would lose (150.00) from holding Oregon Bancorp or give up 6.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Oregon Bancorp vs. National Capital Bank
Performance |
| Timeline |
| Oregon Bancorp |
| National Capital Bank |
Oregon Bancorp and National Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oregon Bancorp and National Capital
The main advantage of trading using opposite Oregon Bancorp and National Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oregon Bancorp position performs unexpectedly, National Capital 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 National Capital will offset losses from the drop in National Capital's long position.| Oregon Bancorp vs. National Capital Bank | Oregon Bancorp vs. Community Heritage Financial | Oregon Bancorp vs. Citizens Financial Corp | Oregon Bancorp vs. First Community Financial |
| National Capital vs. Delhi Bank Corp | National Capital vs. CCSB Financial Corp | National Capital vs. Bank of Utica | National Capital vs. BEO 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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