Correlation Between Sturgis Bancorp and Apollo Bancorp
Can any of the company-specific risk be diversified away by investing in both Sturgis Bancorp and Apollo Bancorp 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 Sturgis Bancorp and Apollo Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sturgis Bancorp and Apollo Bancorp, you can compare the effects of market volatilities on Sturgis Bancorp and Apollo Bancorp 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 Sturgis Bancorp with a short position of Apollo Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sturgis Bancorp and Apollo Bancorp.
Diversification Opportunities for Sturgis Bancorp and Apollo Bancorp
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sturgis and Apollo is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sturgis Bancorp and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and Sturgis Bancorp 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 Sturgis Bancorp are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Sturgis Bancorp i.e., Sturgis Bancorp and Apollo Bancorp go up and down completely randomly.
Pair Corralation between Sturgis Bancorp and Apollo Bancorp
If you would invest 3,519 in Apollo Bancorp on August 29, 2024 and sell it today you would earn a total of 131.00 from holding Apollo Bancorp or generate 3.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Sturgis Bancorp vs. Apollo Bancorp
Performance |
| Timeline |
| Sturgis Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Apollo Bancorp |
Sturgis Bancorp and Apollo Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sturgis Bancorp and Apollo Bancorp
The main advantage of trading using opposite Sturgis Bancorp and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sturgis Bancorp position performs unexpectedly, Apollo Bancorp 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 Apollo Bancorp will offset losses from the drop in Apollo Bancorp's long position.| Sturgis Bancorp vs. FS Bancorp | Sturgis Bancorp vs. Eastern Michigan Financial | Sturgis Bancorp vs. Grand River Commerce | Sturgis Bancorp vs. Bank of Botetourt |
| Apollo Bancorp vs. The Farmers Bank | Apollo Bancorp vs. Bank of Utica | Apollo Bancorp vs. Delhi Bank Corp | Apollo Bancorp vs. CCSB Financial 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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