Correlation Between Territorial Bancorp and Grand River
Can any of the company-specific risk be diversified away by investing in both Territorial 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 Territorial 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 Territorial Bancorp and Grand River Commerce, you can compare the effects of market volatilities on Territorial 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 Territorial Bancorp with a short position of Grand River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Territorial Bancorp and Grand River.
Diversification Opportunities for Territorial Bancorp and Grand River
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Territorial and Grand is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Territorial 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 Territorial 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 Territorial 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 Territorial Bancorp i.e., Territorial Bancorp and Grand River go up and down completely randomly.
Pair Corralation between Territorial Bancorp and Grand River
Given the investment horizon of 90 days Territorial Bancorp is expected to generate 0.98 times more return on investment than Grand River. However, Territorial Bancorp is 1.02 times less risky than Grand River. It trades about 0.09 of its potential returns per unit of risk. Grand River Commerce is currently generating about 0.04 per unit of risk. If you would invest 929.00 in Territorial Bancorp on September 12, 2024 and sell it today you would earn a total of 125.00 from holding Territorial Bancorp or generate 13.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Territorial Bancorp vs. Grand River Commerce
Performance |
| Timeline |
| Territorial Bancorp |
| Grand River Commerce |
Territorial Bancorp and Grand River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Territorial Bancorp and Grand River
The main advantage of trading using opposite Territorial Bancorp and Grand River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Territorial 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.| Territorial Bancorp vs. First Hawaiian | Territorial Bancorp vs. Bank of Hawaii | Territorial Bancorp vs. Financial Institutions | Territorial Bancorp vs. Heritage Financial |
| Grand River vs. FS Bancorp | Grand River vs. Eastern Michigan Financial | Grand River vs. Bank of Botetourt | Grand River vs. FNB Inc |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |