Correlation Between Sandy Spring and Lakeland Bancorp
Can any of the company-specific risk be diversified away by investing in both Sandy Spring and Lakeland 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 Sandy Spring and Lakeland Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandy Spring Bancorp and Lakeland Bancorp, you can compare the effects of market volatilities on Sandy Spring and Lakeland 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 Sandy Spring with a short position of Lakeland Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandy Spring and Lakeland Bancorp.
Diversification Opportunities for Sandy Spring and Lakeland Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sandy and Lakeland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sandy Spring Bancorp and Lakeland Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Bancorp and Sandy Spring 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 Sandy Spring Bancorp are associated (or correlated) with Lakeland Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Bancorp has no effect on the direction of Sandy Spring i.e., Sandy Spring and Lakeland Bancorp go up and down completely randomly.
Pair Corralation between Sandy Spring and Lakeland Bancorp
If you would invest 3,354 in Sandy Spring Bancorp on November 18, 2024 and sell it today you would earn a total of 11.00 from holding Sandy Spring Bancorp or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sandy Spring Bancorp vs. Lakeland Bancorp
Performance |
| Timeline |
| Sandy Spring Bancorp |
| Lakeland Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Sandy Spring and Lakeland Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandy Spring and Lakeland Bancorp
The main advantage of trading using opposite Sandy Spring and Lakeland Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandy Spring position performs unexpectedly, Lakeland 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 Lakeland Bancorp will offset losses from the drop in Lakeland Bancorp's long position.| Sandy Spring vs. Northrim BanCorp | Sandy Spring vs. Provident Financial Services | Sandy Spring vs. Community Trust Bancorp | Sandy Spring vs. First Interstate BancSystem |
| Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland Bancorp vs. LINKBANCORP |
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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