Correlation Between Pioneer Bancorp and Wayne Savings
Can any of the company-specific risk be diversified away by investing in both Pioneer Bancorp and Wayne Savings 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 Pioneer Bancorp and Wayne Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer Bancorp and Wayne Savings Bancshares, you can compare the effects of market volatilities on Pioneer Bancorp and Wayne Savings 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 Pioneer Bancorp with a short position of Wayne Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer Bancorp and Wayne Savings.
Diversification Opportunities for Pioneer Bancorp and Wayne Savings
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pioneer and Wayne is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Bancorp and Wayne Savings Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayne Savings Bancshares and Pioneer 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 Pioneer Bancorp are associated (or correlated) with Wayne Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayne Savings Bancshares has no effect on the direction of Pioneer Bancorp i.e., Pioneer Bancorp and Wayne Savings go up and down completely randomly.
Pair Corralation between Pioneer Bancorp and Wayne Savings
Given the investment horizon of 90 days Pioneer Bancorp is expected to generate 11.33 times less return on investment than Wayne Savings. In addition to that, Pioneer Bancorp is 1.13 times more volatile than Wayne Savings Bancshares. It trades about 0.01 of its total potential returns per unit of risk. Wayne Savings Bancshares is currently generating about 0.17 per unit of volatility. If you would invest 2,645 in Wayne Savings Bancshares on August 28, 2024 and sell it today you would earn a total of 196.00 from holding Wayne Savings Bancshares or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.04% |
| Values | Daily Returns |
Pioneer Bancorp vs. Wayne Savings Bancshares
Performance |
| Timeline |
| Pioneer Bancorp |
| Wayne Savings Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pioneer Bancorp and Wayne Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer Bancorp and Wayne Savings
The main advantage of trading using opposite Pioneer Bancorp and Wayne Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Bancorp position performs unexpectedly, Wayne Savings 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 Wayne Savings will offset losses from the drop in Wayne Savings' long position.| Pioneer Bancorp vs. Home Federal Bancorp | Pioneer Bancorp vs. Lake Shore Bancorp | Pioneer Bancorp vs. Community West Bancshares | Pioneer Bancorp vs. Magyar Bancorp |
| Wayne Savings vs. First IC | Wayne Savings vs. CCFNB Bancorp | Wayne Savings vs. Glen Burnie Bancorp | Wayne Savings vs. Main Street Financial |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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