Correlation Between Pinnacle Bancshares and Northfield Bancorp
Can any of the company-specific risk be diversified away by investing in both Pinnacle Bancshares and Northfield Bancorp 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 Pinnacle Bancshares and Northfield Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinnacle Bancshares and Northfield Bancorp, you can compare the effects of market volatilities on Pinnacle Bancshares and Northfield Bancorp 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 Pinnacle Bancshares with a short position of Northfield Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinnacle Bancshares and Northfield Bancorp.
Diversification Opportunities for Pinnacle Bancshares and Northfield Bancorp
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pinnacle and Northfield is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Pinnacle Bancshares and Northfield Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northfield Bancorp and Pinnacle Bancshares 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 Pinnacle Bancshares are associated (or correlated) with Northfield Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northfield Bancorp has no effect on the direction of Pinnacle Bancshares i.e., Pinnacle Bancshares and Northfield Bancorp go up and down completely randomly.
Pair Corralation between Pinnacle Bancshares and Northfield Bancorp
If you would invest 1,164 in Northfield Bancorp on September 1, 2024 and sell it today you would earn a total of 174.00 from holding Northfield Bancorp or generate 14.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Pinnacle Bancshares vs. Northfield Bancorp
Performance |
| Timeline |
| Pinnacle Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Northfield Bancorp |
Pinnacle Bancshares and Northfield Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinnacle Bancshares and Northfield Bancorp
The main advantage of trading using opposite Pinnacle Bancshares and Northfield Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinnacle Bancshares position performs unexpectedly, Northfield Bancorp 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 Northfield Bancorp will offset losses from the drop in Northfield Bancorp's long position.| Pinnacle Bancshares vs. Eastern Michigan Financial | Pinnacle Bancshares vs. Commercial National Financial | Pinnacle Bancshares vs. Mifflinburg Bancorp | Pinnacle Bancshares vs. Apollo Bancorp |
| Northfield Bancorp vs. Finward Bancorp | Northfield Bancorp vs. Community West Bancshares | Northfield Bancorp vs. First Financial Northwest | Northfield Bancorp vs. Home 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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