Correlation Between Peoples Bancorp and Virginia National
Can any of the company-specific risk be diversified away by investing in both Peoples Bancorp and Virginia National 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 Peoples Bancorp and Virginia National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peoples Bancorp and Virginia National Bankshares, you can compare the effects of market volatilities on Peoples Bancorp and Virginia National 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 Peoples Bancorp with a short position of Virginia National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Bancorp and Virginia National.
Diversification Opportunities for Peoples Bancorp and Virginia National
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Peoples and Virginia is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Bancorp and Virginia National Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virginia National and Peoples 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 Peoples Bancorp are associated (or correlated) with Virginia National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virginia National has no effect on the direction of Peoples Bancorp i.e., Peoples Bancorp and Virginia National go up and down completely randomly.
Pair Corralation between Peoples Bancorp and Virginia National
Given the investment horizon of 90 days Peoples Bancorp is expected to generate 2.02 times more return on investment than Virginia National. However, Peoples Bancorp is 2.02 times more volatile than Virginia National Bankshares. It trades about 0.18 of its potential returns per unit of risk. Virginia National Bankshares is currently generating about 0.15 per unit of risk. If you would invest 3,109 in Peoples Bancorp on August 31, 2024 and sell it today you would earn a total of 412.00 from holding Peoples Bancorp or generate 13.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peoples Bancorp vs. Virginia National Bankshares
Performance |
| Timeline |
| Peoples Bancorp |
| Virginia National |
Peoples Bancorp and Virginia National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Bancorp and Virginia National
The main advantage of trading using opposite Peoples Bancorp and Virginia National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Bancorp position performs unexpectedly, Virginia National 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 Virginia National will offset losses from the drop in Virginia National's long position.| Peoples Bancorp vs. Eagle Bancorp | Peoples Bancorp vs. Northrim BanCorp | Peoples Bancorp vs. United Bankshares | Peoples Bancorp vs. Pacific Premier Bancorp |
| Virginia National vs. Finward Bancorp | Virginia National vs. Community West Bancshares | Virginia National vs. First Financial Northwest | Virginia National vs. Oak Valley 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |