Correlation Between Shore Bancshares and TC Bancshares
Can any of the company-specific risk be diversified away by investing in both Shore Bancshares and TC Bancshares 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 Shore Bancshares and TC Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shore Bancshares and TC Bancshares, you can compare the effects of market volatilities on Shore Bancshares and TC Bancshares 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 Shore Bancshares with a short position of TC Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shore Bancshares and TC Bancshares.
Diversification Opportunities for Shore Bancshares and TC Bancshares
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shore and TCBC is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shore Bancshares and TC Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Bancshares and Shore Bancshares 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 Shore Bancshares are associated (or correlated) with TC Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Bancshares has no effect on the direction of Shore Bancshares i.e., Shore Bancshares and TC Bancshares go up and down completely randomly.
Pair Corralation between Shore Bancshares and TC Bancshares
Given the investment horizon of 90 days Shore Bancshares is expected to generate 1.31 times more return on investment than TC Bancshares. However, Shore Bancshares is 1.31 times more volatile than TC Bancshares. It trades about 0.0 of its potential returns per unit of risk. TC Bancshares is currently generating about 0.0 per unit of risk. If you would invest 1,778 in Shore Bancshares on September 3, 2024 and sell it today you would lose (133.00) from holding Shore Bancshares or give up 7.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 83.43% |
| Values | Daily Returns |
Shore Bancshares vs. TC Bancshares
Performance |
| Timeline |
| Shore Bancshares |
| TC Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shore Bancshares and TC Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shore Bancshares and TC Bancshares
The main advantage of trading using opposite Shore Bancshares and TC Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shore Bancshares position performs unexpectedly, TC Bancshares 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 TC Bancshares will offset losses from the drop in TC Bancshares' long position.| Shore Bancshares vs. Home Federal Bancorp | Shore Bancshares vs. IF Bancorp | Shore Bancshares vs. Western New England | Shore Bancshares vs. Colony Bankcorp |
| TC Bancshares vs. Home Federal Bancorp | TC Bancshares vs. Lake Shore Bancorp | TC Bancshares vs. Community West Bancshares | TC Bancshares vs. First Financial Northwest |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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