Correlation Between Sturgis Bancorp and Grand River
Can any of the company-specific risk be diversified away by investing in both Sturgis Bancorp and Grand River 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 Grand River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sturgis Bancorp and Grand River Commerce, you can compare the effects of market volatilities on Sturgis Bancorp and Grand River 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 Grand River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sturgis Bancorp and Grand River.
Diversification Opportunities for Sturgis Bancorp and Grand River
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sturgis and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sturgis Bancorp and Grand River Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand River Commerce 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 Grand River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand River Commerce has no effect on the direction of Sturgis Bancorp i.e., Sturgis Bancorp and Grand River go up and down completely randomly.
Pair Corralation between Sturgis Bancorp and Grand River
If you would invest 265.00 in Grand River Commerce on January 14, 2025 and sell it today you would earn a total of 121.00 from holding Grand River Commerce or generate 45.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sturgis Bancorp vs. Grand River Commerce
Performance |
| Timeline |
| Sturgis Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Grand River Commerce |
Sturgis Bancorp and Grand River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sturgis Bancorp and Grand River
The main advantage of trading using opposite Sturgis Bancorp and Grand River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sturgis Bancorp position performs unexpectedly, Grand River 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 Grand River will offset losses from the drop in Grand River'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 |
| Grand River vs. Banco Bradesco SA | Grand River vs. Itau Unibanco Banco | Grand River vs. Lloyds Banking Group | Grand River vs. Deutsche Bank AG |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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