Correlation Between TC Bancshares and Sierra Bancorp
Can any of the company-specific risk be diversified away by investing in both TC Bancshares and Sierra 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 TC Bancshares and Sierra Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TC Bancshares and Sierra Bancorp, you can compare the effects of market volatilities on TC Bancshares and Sierra 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 TC Bancshares with a short position of Sierra Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of TC Bancshares and Sierra Bancorp.
Diversification Opportunities for TC Bancshares and Sierra Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TCBC and Sierra is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TC Bancshares and Sierra Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sierra Bancorp and TC Bancshares 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 TC Bancshares are associated (or correlated) with Sierra Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sierra Bancorp has no effect on the direction of TC Bancshares i.e., TC Bancshares and Sierra Bancorp go up and down completely randomly.
Pair Corralation between TC Bancshares and Sierra Bancorp
If you would invest 3,010 in Sierra Bancorp on December 1, 2024 and sell it today you would earn a total of 62.00 from holding Sierra Bancorp or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
TC Bancshares vs. Sierra Bancorp
Performance |
| Timeline |
| TC Bancshares |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Sierra Bancorp |
TC Bancshares and Sierra Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TC Bancshares and Sierra Bancorp
The main advantage of trading using opposite TC Bancshares and Sierra Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TC Bancshares position performs unexpectedly, Sierra 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 Sierra Bancorp will offset losses from the drop in Sierra Bancorp's long position.| TC Bancshares vs. Home Federal Bancorp | TC Bancshares vs. Lake Shore Bancorp | TC Bancshares vs. Community West Bancshares | TC Bancshares vs. First Financial Northwest |
| Sierra Bancorp vs. Home Federal Bancorp | Sierra Bancorp vs. First Financial Northwest | Sierra Bancorp vs. First Northwest Bancorp | Sierra Bancorp vs. First Capital |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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