Correlation Between Savi Financial and Oregon Bancorp
Can any of the company-specific risk be diversified away by investing in both Savi Financial and Oregon 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 Savi Financial and Oregon Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Savi Financial and Oregon Bancorp, you can compare the effects of market volatilities on Savi Financial and Oregon 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 Savi Financial with a short position of Oregon Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Savi Financial and Oregon Bancorp.
Diversification Opportunities for Savi Financial and Oregon Bancorp
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Savi and Oregon is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Savi Financial and Oregon Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oregon Bancorp and Savi Financial 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 Savi Financial are associated (or correlated) with Oregon Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oregon Bancorp has no effect on the direction of Savi Financial i.e., Savi Financial and Oregon Bancorp go up and down completely randomly.
Pair Corralation between Savi Financial and Oregon Bancorp
Given the investment horizon of 90 days Savi Financial is expected to generate 0.12 times more return on investment than Oregon Bancorp. However, Savi Financial is 8.63 times less risky than Oregon Bancorp. It trades about 0.1 of its potential returns per unit of risk. Oregon Bancorp is currently generating about -0.19 per unit of risk. If you would invest 1,505 in Savi Financial on October 11, 2024 and sell it today you would earn a total of 5.00 from holding Savi Financial or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Savi Financial vs. Oregon Bancorp
Performance |
| Timeline |
| Savi Financial |
| Oregon Bancorp |
Savi Financial and Oregon Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Savi Financial and Oregon Bancorp
The main advantage of trading using opposite Savi Financial and Oregon Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Savi Financial position performs unexpectedly, Oregon 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 Oregon Bancorp will offset losses from the drop in Oregon Bancorp's long position.| Savi Financial vs. Eurobank Ergasias Services | Savi Financial vs. Standard Bank Group | Savi Financial vs. Bank Central Asia | Savi Financial vs. PSB Holdings |
| Oregon Bancorp vs. Eurobank Ergasias Services | Oregon Bancorp vs. Standard Bank Group | Oregon Bancorp vs. Bank Central Asia | Oregon Bancorp vs. PSB Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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