Correlation Between PSB Holdings and Northeast Indiana
Can any of the company-specific risk be diversified away by investing in both PSB Holdings and Northeast Indiana 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 PSB Holdings and Northeast Indiana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PSB Holdings and Northeast Indiana Bancorp, you can compare the effects of market volatilities on PSB Holdings and Northeast Indiana 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 PSB Holdings with a short position of Northeast Indiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of PSB Holdings and Northeast Indiana.
Diversification Opportunities for PSB Holdings and Northeast Indiana
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between PSB and Northeast is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding PSB Holdings and Northeast Indiana Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northeast Indiana Bancorp and PSB Holdings 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 PSB Holdings are associated (or correlated) with Northeast Indiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northeast Indiana Bancorp has no effect on the direction of PSB Holdings i.e., PSB Holdings and Northeast Indiana go up and down completely randomly.
Pair Corralation between PSB Holdings and Northeast Indiana
If you would invest 2,567 in PSB Holdings on November 3, 2024 and sell it today you would earn a total of 33.00 from holding PSB Holdings or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
PSB Holdings vs. Northeast Indiana Bancorp
Performance |
| Timeline |
| PSB Holdings |
| Northeast Indiana Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PSB Holdings and Northeast Indiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PSB Holdings and Northeast Indiana
The main advantage of trading using opposite PSB Holdings and Northeast Indiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PSB Holdings position performs unexpectedly, Northeast Indiana 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 Northeast Indiana will offset losses from the drop in Northeast Indiana's long position.| PSB Holdings vs. Eagle Financial Services | PSB Holdings vs. National Capital Bank | PSB Holdings vs. Community Heritage Financial | PSB Holdings vs. Citizens Financial Corp |
| Northeast Indiana vs. PSB Holdings | Northeast Indiana vs. Chesapeake Finl Shs | Northeast Indiana vs. Eagle Financial Services | Northeast Indiana vs. CCFNB 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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