Correlation Between Bancorp and Global
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By analyzing existing cross correlation between The Bancorp and Global Payments 415, you can compare the effects of market volatilities on Bancorp and Global 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 Bancorp with a short position of Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancorp and Global.
Diversification Opportunities for Bancorp and Global
Very good diversification
The 3 months correlation between Bancorp and Global is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Bancorp and Global Payments 415 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 415 and 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 The Bancorp are associated (or correlated) with Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments 415 has no effect on the direction of Bancorp i.e., Bancorp and Global go up and down completely randomly.
Pair Corralation between Bancorp and Global
Given the investment horizon of 90 days The Bancorp is expected to generate 1.72 times more return on investment than Global. However, Bancorp is 1.72 times more volatile than Global Payments 415. It trades about 0.18 of its potential returns per unit of risk. Global Payments 415 is currently generating about -0.19 per unit of risk. If you would invest 5,026 in The Bancorp on September 1, 2024 and sell it today you would earn a total of 817.00 from holding The Bancorp or generate 16.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
The Bancorp vs. Global Payments 415
Performance |
| Timeline |
| Bancorp |
| Global Payments 415 |
Bancorp and Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bancorp and Global
The main advantage of trading using opposite Bancorp and Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancorp position performs unexpectedly, Global 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 Global will offset losses from the drop in Global's long position.| Bancorp vs. Heartland Financial USA | Bancorp vs. Heritage Commerce Corp | Bancorp vs. Business First Bancshares | Bancorp vs. German American Bancorp |
| Global vs. Shake Shack | Global vs. Dennys Corp | Global vs. Fluent Inc | Global vs. Software Acquisition Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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