Correlation Between Santa Cruz and Harbor Bankshares
Can any of the company-specific risk be diversified away by investing in both Santa Cruz and Harbor Bankshares 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 Santa Cruz and Harbor Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Santa Cruz County and Harbor Bankshares, you can compare the effects of market volatilities on Santa Cruz and Harbor Bankshares 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 Santa Cruz with a short position of Harbor Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Santa Cruz and Harbor Bankshares.
Diversification Opportunities for Santa Cruz and Harbor Bankshares
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Santa and Harbor is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Santa Cruz County and Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Bankshares and Santa Cruz 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 Santa Cruz County are associated (or correlated) with Harbor Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Bankshares has no effect on the direction of Santa Cruz i.e., Santa Cruz and Harbor Bankshares go up and down completely randomly.
Pair Corralation between Santa Cruz and Harbor Bankshares
Given the investment horizon of 90 days Santa Cruz County is expected to under-perform the Harbor Bankshares. But the otc stock apears to be less risky and, when comparing its historical volatility, Santa Cruz County is 16.57 times less risky than Harbor Bankshares. The otc stock trades about -0.54 of its potential returns per unit of risk. The Harbor Bankshares is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,303 in Harbor Bankshares on October 25, 2024 and sell it today you would earn a total of 667.00 from holding Harbor Bankshares or generate 51.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Santa Cruz County vs. Harbor Bankshares
Performance |
| Timeline |
| Santa Cruz County |
| Harbor Bankshares |
Santa Cruz and Harbor Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Santa Cruz and Harbor Bankshares
The main advantage of trading using opposite Santa Cruz and Harbor Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Santa Cruz position performs unexpectedly, Harbor Bankshares 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 Harbor Bankshares will offset losses from the drop in Harbor Bankshares' long position.| Santa Cruz vs. Harbor Bankshares | Santa Cruz vs. Liberty Northwest Bancorp | Santa Cruz vs. Pioneer Bankcorp | Santa Cruz vs. Summit Bancshares |
| Harbor Bankshares vs. MNB Holdings Corp | Harbor Bankshares vs. Oconee Financial | Harbor Bankshares vs. Mission Valley Bancorp | Harbor Bankshares vs. Merchants Marine 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |