Correlation Between Summit Bank and Univest Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Summit Bank and Univest Pennsylvania 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 Summit Bank and Univest Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Bank Group and Univest Pennsylvania, you can compare the effects of market volatilities on Summit Bank and Univest Pennsylvania 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 Summit Bank with a short position of Univest Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Bank and Univest Pennsylvania.
Diversification Opportunities for Summit Bank and Univest Pennsylvania
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Summit and Univest is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Summit Bank Group and Univest Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univest Pennsylvania and Summit Bank 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 Summit Bank Group are associated (or correlated) with Univest Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univest Pennsylvania has no effect on the direction of Summit Bank i.e., Summit Bank and Univest Pennsylvania go up and down completely randomly.
Pair Corralation between Summit Bank and Univest Pennsylvania
Given the investment horizon of 90 days Summit Bank Group is expected to under-perform the Univest Pennsylvania. But the pink sheet apears to be less risky and, when comparing its historical volatility, Summit Bank Group is 1.68 times less risky than Univest Pennsylvania. The pink sheet trades about -0.36 of its potential returns per unit of risk. The Univest Pennsylvania is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,966 in Univest Pennsylvania on October 23, 2024 and sell it today you would earn a total of 3.00 from holding Univest Pennsylvania or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Bank Group vs. Univest Pennsylvania
Performance |
| Timeline |
| Summit Bank Group |
| Univest Pennsylvania |
Summit Bank and Univest Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Bank and Univest Pennsylvania
The main advantage of trading using opposite Summit Bank and Univest Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Bank position performs unexpectedly, Univest Pennsylvania 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 Univest Pennsylvania will offset losses from the drop in Univest Pennsylvania's long position.| Summit Bank vs. Century Next Financial | Summit Bank vs. Triad Business Bank | Summit Bank vs. First Ottawa Bancshares | Summit Bank vs. First Community Financial |
| Univest Pennsylvania vs. Waterstone Financial | Univest Pennsylvania vs. Mid Penn Bancorp | Univest Pennsylvania vs. ST Bancorp | Univest Pennsylvania vs. Republic 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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