Correlation Between Oregon Pacific and First Sound
Can any of the company-specific risk be diversified away by investing in both Oregon Pacific and First Sound 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 Pacific and First Sound into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oregon Pacific Bancorp and First Sound Bank, you can compare the effects of market volatilities on Oregon Pacific and First Sound 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 Pacific with a short position of First Sound. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oregon Pacific and First Sound.
Diversification Opportunities for Oregon Pacific and First Sound
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oregon and First is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Oregon Pacific Bancorp and First Sound Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Sound Bank and Oregon Pacific 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 Pacific Bancorp are associated (or correlated) with First Sound. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Sound Bank has no effect on the direction of Oregon Pacific i.e., Oregon Pacific and First Sound go up and down completely randomly.
Pair Corralation between Oregon Pacific and First Sound
If you would invest 800.00 in Oregon Pacific Bancorp on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Oregon Pacific Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Oregon Pacific Bancorp vs. First Sound Bank
Performance |
| Timeline |
| Oregon Pacific Bancorp |
| First Sound Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Oregon Pacific and First Sound Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oregon Pacific and First Sound
The main advantage of trading using opposite Oregon Pacific and First Sound positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oregon Pacific position performs unexpectedly, First Sound 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 First Sound will offset losses from the drop in First Sound's long position.| Oregon Pacific vs. 1ST SUMMIT BANCORP | Oregon Pacific vs. Apollo Bancorp | Oregon Pacific vs. The Farmers Bank | Oregon Pacific vs. Old National Bancorp |
| First Sound vs. Rhinebeck Bancorp | First Sound vs. Magyar Bancorp | First Sound vs. Community West Bancshares | First Sound vs. First Financial Northwest |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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