Correlation Between Sturgis Bancorp and Pioneer Bankcorp
Can any of the company-specific risk be diversified away by investing in both Sturgis Bancorp and Pioneer Bankcorp 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 Pioneer Bankcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sturgis Bancorp and Pioneer Bankcorp, you can compare the effects of market volatilities on Sturgis Bancorp and Pioneer Bankcorp 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 Pioneer Bankcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sturgis Bancorp and Pioneer Bankcorp.
Diversification Opportunities for Sturgis Bancorp and Pioneer Bankcorp
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sturgis and Pioneer is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Sturgis Bancorp and Pioneer Bankcorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Bankcorp 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 Pioneer Bankcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Bankcorp has no effect on the direction of Sturgis Bancorp i.e., Sturgis Bancorp and Pioneer Bankcorp go up and down completely randomly.
Pair Corralation between Sturgis Bancorp and Pioneer Bankcorp
If you would invest 3,812 in Pioneer Bankcorp on September 1, 2024 and sell it today you would earn a total of 888.00 from holding Pioneer Bankcorp or generate 23.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Sturgis Bancorp vs. Pioneer Bankcorp
Performance |
| Timeline |
| Sturgis Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Pioneer Bankcorp |
Sturgis Bancorp and Pioneer Bankcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sturgis Bancorp and Pioneer Bankcorp
The main advantage of trading using opposite Sturgis Bancorp and Pioneer Bankcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sturgis Bancorp position performs unexpectedly, Pioneer Bankcorp 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 Pioneer Bankcorp will offset losses from the drop in Pioneer Bankcorp'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 |
| Pioneer Bankcorp vs. FineMark Holdings | Pioneer Bankcorp vs. Oxford Bank | Pioneer Bankcorp vs. Prime Meridian Holding | Pioneer Bankcorp vs. Oconee Financial |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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