Correlation Between Summit Bancshares and WVS Financial
Can any of the company-specific risk be diversified away by investing in both Summit Bancshares and WVS Financial 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 Bancshares and WVS Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Bancshares and WVS Financial Corp, you can compare the effects of market volatilities on Summit Bancshares and WVS Financial 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 Bancshares with a short position of WVS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Bancshares and WVS Financial.
Diversification Opportunities for Summit Bancshares and WVS Financial
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Summit and WVS is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Summit Bancshares and WVS Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WVS Financial Corp and Summit 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 Summit Bancshares are associated (or correlated) with WVS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WVS Financial Corp has no effect on the direction of Summit Bancshares i.e., Summit Bancshares and WVS Financial go up and down completely randomly.
Pair Corralation between Summit Bancshares and WVS Financial
If you would invest 4,313 in Summit Bancshares on September 1, 2024 and sell it today you would earn a total of 74.00 from holding Summit Bancshares or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Summit Bancshares vs. WVS Financial Corp
Performance |
| Timeline |
| Summit Bancshares |
| WVS Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Bancshares and WVS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Bancshares and WVS Financial
The main advantage of trading using opposite Summit Bancshares and WVS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Bancshares position performs unexpectedly, WVS Financial 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 WVS Financial will offset losses from the drop in WVS Financial's long position.| Summit Bancshares vs. Piraeus Bank SA | Summit Bancshares vs. Turkiye Garanti Bankasi | Summit Bancshares vs. Delhi Bank Corp | Summit Bancshares vs. Uwharrie Capital Corp |
| WVS Financial vs. Pioneer Bankcorp | WVS Financial vs. Liberty Northwest Bancorp | WVS Financial vs. First Community | WVS Financial vs. Coeur dAlene 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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