Correlation Between Triumph Financial and NSTS Bancorp
Can any of the company-specific risk be diversified away by investing in both Triumph Financial and NSTS 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 Triumph Financial and NSTS Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Financial and NSTS Bancorp, you can compare the effects of market volatilities on Triumph Financial and NSTS 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 Triumph Financial with a short position of NSTS Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Financial and NSTS Bancorp.
Diversification Opportunities for Triumph Financial and NSTS Bancorp
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Triumph and NSTS is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Financial and NSTS Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSTS Bancorp and Triumph Financial 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 Triumph Financial are associated (or correlated) with NSTS Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSTS Bancorp has no effect on the direction of Triumph Financial i.e., Triumph Financial and NSTS Bancorp go up and down completely randomly.
Pair Corralation between Triumph Financial and NSTS Bancorp
Assuming the 90 days horizon Triumph Financial is expected to under-perform the NSTS Bancorp. In addition to that, Triumph Financial is 1.63 times more volatile than NSTS Bancorp. It trades about -0.05 of its total potential returns per unit of risk. NSTS Bancorp is currently generating about 0.07 per unit of volatility. If you would invest 1,107 in NSTS Bancorp on September 3, 2024 and sell it today you would earn a total of 12.00 from holding NSTS Bancorp or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triumph Financial vs. NSTS Bancorp
Performance |
| Timeline |
| Triumph Financial |
| NSTS Bancorp |
Triumph Financial and NSTS Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph Financial and NSTS Bancorp
The main advantage of trading using opposite Triumph Financial and NSTS Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph Financial position performs unexpectedly, NSTS 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 NSTS Bancorp will offset losses from the drop in NSTS Bancorp's long position.| Triumph Financial vs. JPMorgan Chase Co | Triumph Financial vs. Citigroup | Triumph Financial vs. Wells Fargo | Triumph Financial vs. Toronto Dominion Bank |
| NSTS Bancorp vs. JPMorgan Chase Co | NSTS Bancorp vs. Citigroup | NSTS Bancorp vs. Wells Fargo | NSTS Bancorp vs. Toronto Dominion Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |