Correlation Between Triad Business and Summit Bank
Can any of the company-specific risk be diversified away by investing in both Triad Business and Summit Bank 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 Triad Business and Summit Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triad Business Bank and Summit Bank Group, you can compare the effects of market volatilities on Triad Business and Summit Bank 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 Triad Business with a short position of Summit Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triad Business and Summit Bank.
Diversification Opportunities for Triad Business and Summit Bank
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Triad and Summit is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Triad Business Bank and Summit Bank Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Bank Group and Triad Business 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 Triad Business Bank are associated (or correlated) with Summit Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Bank Group has no effect on the direction of Triad Business i.e., Triad Business and Summit Bank go up and down completely randomly.
Pair Corralation between Triad Business and Summit Bank
Given the investment horizon of 90 days Triad Business Bank is expected to generate 1.01 times more return on investment than Summit Bank. However, Triad Business is 1.01 times more volatile than Summit Bank Group. It trades about 0.0 of its potential returns per unit of risk. Summit Bank Group is currently generating about -0.36 per unit of risk. If you would invest 500.00 in Triad Business Bank on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Triad Business Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Triad Business Bank vs. Summit Bank Group
Performance |
| Timeline |
| Triad Business Bank |
| Summit Bank Group |
Triad Business and Summit Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triad Business and Summit Bank
The main advantage of trading using opposite Triad Business and Summit Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triad Business position performs unexpectedly, Summit Bank 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 Summit Bank will offset losses from the drop in Summit Bank's long position.| Triad Business vs. SEI Investments | Triad Business vs. NL Industries | Triad Business vs. Balchem | Triad Business vs. Shenzhen Investment Holdings |
| Summit Bank vs. Century Next Financial | Summit Bank vs. Triad Business Bank | Summit Bank vs. First Ottawa Bancshares | Summit Bank vs. First Community 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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