Correlation Between Quaint Oak and United Tennessee
Can any of the company-specific risk be diversified away by investing in both Quaint Oak and United Tennessee 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 Quaint Oak and United Tennessee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quaint Oak Bancorp and United Tennessee Bankshares, you can compare the effects of market volatilities on Quaint Oak and United Tennessee 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 Quaint Oak with a short position of United Tennessee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quaint Oak and United Tennessee.
Diversification Opportunities for Quaint Oak and United Tennessee
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quaint and United is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Quaint Oak Bancorp and United Tennessee Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Tennessee Ban and Quaint Oak 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 Quaint Oak Bancorp are associated (or correlated) with United Tennessee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Tennessee Ban has no effect on the direction of Quaint Oak i.e., Quaint Oak and United Tennessee go up and down completely randomly.
Pair Corralation between Quaint Oak and United Tennessee
Given the investment horizon of 90 days Quaint Oak Bancorp is expected to under-perform the United Tennessee. In addition to that, Quaint Oak is 1.57 times more volatile than United Tennessee Bankshares. It trades about -0.03 of its total potential returns per unit of risk. United Tennessee Bankshares is currently generating about -0.01 per unit of volatility. If you would invest 1,875 in United Tennessee Bankshares on November 2, 2024 and sell it today you would lose (125.00) from holding United Tennessee Bankshares or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 29.29% |
| Values | Daily Returns |
Quaint Oak Bancorp vs. United Tennessee Bankshares
Performance |
| Timeline |
| Quaint Oak Bancorp |
| United Tennessee Ban |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Quaint Oak and United Tennessee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quaint Oak and United Tennessee
The main advantage of trading using opposite Quaint Oak and United Tennessee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quaint Oak position performs unexpectedly, United Tennessee 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 United Tennessee will offset losses from the drop in United Tennessee's long position.| Quaint Oak vs. Home Federal Bancorp | Quaint Oak vs. Community West Bancshares | Quaint Oak vs. Magyar Bancorp | Quaint Oak vs. IF Bancorp |
| United Tennessee vs. United Bancorporation of | United Tennessee vs. Tri County Financial Group | United Tennessee vs. Quaint Oak 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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