Correlation Between Partners Bancorp and Finward Bancorp
Can any of the company-specific risk be diversified away by investing in both Partners Bancorp and Finward 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 Partners Bancorp and Finward Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Partners Bancorp and Finward Bancorp, you can compare the effects of market volatilities on Partners Bancorp and Finward 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 Partners Bancorp with a short position of Finward Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Partners Bancorp and Finward Bancorp.
Diversification Opportunities for Partners Bancorp and Finward Bancorp
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Partners and Finward is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Partners Bancorp and Finward Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finward Bancorp and Partners 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 Partners Bancorp are associated (or correlated) with Finward Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finward Bancorp has no effect on the direction of Partners Bancorp i.e., Partners Bancorp and Finward Bancorp go up and down completely randomly.
Pair Corralation between Partners Bancorp and Finward Bancorp
If you would invest 2,265 in Finward Bancorp on August 29, 2024 and sell it today you would earn a total of 826.00 from holding Finward Bancorp or generate 36.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Partners Bancorp vs. Finward Bancorp
Performance |
| Timeline |
| Partners Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Finward Bancorp |
Partners Bancorp and Finward Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Partners Bancorp and Finward Bancorp
The main advantage of trading using opposite Partners Bancorp and Finward Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Partners Bancorp position performs unexpectedly, Finward 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 Finward Bancorp will offset losses from the drop in Finward Bancorp's long position.| Partners Bancorp vs. Home Federal Bancorp | Partners Bancorp vs. Magyar Bancorp | Partners Bancorp vs. Community West Bancshares | Partners Bancorp vs. Lake Shore Bancorp |
| Finward Bancorp vs. Community West Bancshares | Finward Bancorp vs. First Financial Northwest | Finward Bancorp vs. Oak Valley Bancorp | Finward Bancorp vs. Home Federal 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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