Correlation Between Territorial Bancorp and Lewis Clark
Can any of the company-specific risk be diversified away by investing in both Territorial Bancorp and Lewis Clark 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 Lewis Clark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Territorial Bancorp and Lewis Clark Bancorp, you can compare the effects of market volatilities on Territorial Bancorp and Lewis Clark 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 Lewis Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Territorial Bancorp and Lewis Clark.
Diversification Opportunities for Territorial Bancorp and Lewis Clark
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Territorial and Lewis is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Territorial Bancorp and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp 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 Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of Territorial Bancorp i.e., Territorial Bancorp and Lewis Clark go up and down completely randomly.
Pair Corralation between Territorial Bancorp and Lewis Clark
Given the investment horizon of 90 days Territorial Bancorp is expected to under-perform the Lewis Clark. In addition to that, Territorial Bancorp is 1.53 times more volatile than Lewis Clark Bancorp. It trades about -0.01 of its total potential returns per unit of risk. Lewis Clark Bancorp is currently generating about 0.05 per unit of volatility. If you would invest 2,500 in Lewis Clark Bancorp on September 12, 2024 and sell it today you would earn a total of 500.00 from holding Lewis Clark Bancorp or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 67.33% |
| Values | Daily Returns |
Territorial Bancorp vs. Lewis Clark Bancorp
Performance |
| Timeline |
| Territorial Bancorp |
| Lewis Clark Bancorp |
Territorial Bancorp and Lewis Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Territorial Bancorp and Lewis Clark
The main advantage of trading using opposite Territorial Bancorp and Lewis Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Territorial Bancorp position performs unexpectedly, Lewis Clark 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 Lewis Clark will offset losses from the drop in Lewis Clark's long position.| Territorial Bancorp vs. First Hawaiian | Territorial Bancorp vs. Bank of Hawaii | Territorial Bancorp vs. Financial Institutions | Territorial Bancorp vs. Heritage Financial |
| Lewis Clark vs. FitLife Brands, Common | Lewis Clark vs. Perseus Mining Limited | Lewis Clark vs. Mesa Air Group | Lewis Clark vs. Sligro Food 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |