Correlation Between Signature Bank and Primoris Services
Can any of the company-specific risk be diversified away by investing in both Signature Bank and Primoris Services 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 Signature Bank and Primoris Services into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signature Bank and Primoris Services, you can compare the effects of market volatilities on Signature Bank and Primoris Services 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 Signature Bank with a short position of Primoris Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signature Bank and Primoris Services.
Diversification Opportunities for Signature Bank and Primoris Services
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Signature and Primoris is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Signature Bank and Primoris Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primoris Services and Signature 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 Signature Bank are associated (or correlated) with Primoris Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primoris Services has no effect on the direction of Signature Bank i.e., Signature Bank and Primoris Services go up and down completely randomly.
Pair Corralation between Signature Bank and Primoris Services
If you would invest 6,262 in Primoris Services on September 1, 2024 and sell it today you would earn a total of 2,109 from holding Primoris Services or generate 33.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Signature Bank vs. Primoris Services
Performance |
| Timeline |
| Signature Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Primoris Services |
Signature Bank and Primoris Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signature Bank and Primoris Services
The main advantage of trading using opposite Signature Bank and Primoris Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signature Bank position performs unexpectedly, Primoris Services 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 Primoris Services will offset losses from the drop in Primoris Services' long position.| Signature Bank vs. Primoris Services | Signature Bank vs. BOS Better Online | Signature Bank vs. Integral Ad Science | Signature Bank vs. Emerson Electric |
| Primoris Services vs. MYR Group | Primoris Services vs. Granite Construction Incorporated | Primoris Services vs. Matrix Service Co | Primoris Services vs. Api Group Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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