Correlation Between Oregon Pacific and WTB Financial
Can any of the company-specific risk be diversified away by investing in both Oregon Pacific and WTB 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 Oregon Pacific and WTB Financial 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 WTB Financial, you can compare the effects of market volatilities on Oregon Pacific and WTB 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 Oregon Pacific with a short position of WTB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oregon Pacific and WTB Financial.
Diversification Opportunities for Oregon Pacific and WTB Financial
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oregon and WTB is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Oregon Pacific Bancorp and WTB Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WTB Financial 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 WTB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WTB Financial has no effect on the direction of Oregon Pacific i.e., Oregon Pacific and WTB Financial go up and down completely randomly.
Pair Corralation between Oregon Pacific and WTB Financial
Given the investment horizon of 90 days Oregon Pacific is expected to generate 5.67 times less return on investment than WTB Financial. In addition to that, Oregon Pacific is 2.04 times more volatile than WTB Financial. It trades about 0.01 of its total potential returns per unit of risk. WTB Financial is currently generating about 0.06 per unit of volatility. If you would invest 30,600 in WTB Financial on November 3, 2024 and sell it today you would earn a total of 200.00 from holding WTB Financial or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oregon Pacific Bancorp vs. WTB Financial
Performance |
| Timeline |
| Oregon Pacific Bancorp |
| WTB Financial |
Oregon Pacific and WTB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oregon Pacific and WTB Financial
The main advantage of trading using opposite Oregon Pacific and WTB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oregon Pacific position performs unexpectedly, WTB 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 WTB Financial will offset losses from the drop in WTB Financial'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 |
| WTB Financial vs. Pioneer Bankcorp | WTB Financial vs. Liberty Northwest Bancorp | WTB Financial vs. First Community | WTB Financial vs. Coeur dAlene 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.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |