Correlation Between Taylor Calvin and Lyons Bancorp
Can any of the company-specific risk be diversified away by investing in both Taylor Calvin and Lyons 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 Taylor Calvin and Lyons Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taylor Calvin B and Lyons Bancorp, you can compare the effects of market volatilities on Taylor Calvin and Lyons 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 Taylor Calvin with a short position of Lyons Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taylor Calvin and Lyons Bancorp.
Diversification Opportunities for Taylor Calvin and Lyons Bancorp
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Taylor and Lyons is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Taylor Calvin B and Lyons Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyons Bancorp and Taylor Calvin 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 Taylor Calvin B are associated (or correlated) with Lyons Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyons Bancorp has no effect on the direction of Taylor Calvin i.e., Taylor Calvin and Lyons Bancorp go up and down completely randomly.
Pair Corralation between Taylor Calvin and Lyons Bancorp
Given the investment horizon of 90 days Taylor Calvin B is expected to generate 1.44 times more return on investment than Lyons Bancorp. However, Taylor Calvin is 1.44 times more volatile than Lyons Bancorp. It trades about 0.03 of its potential returns per unit of risk. Lyons Bancorp is currently generating about 0.03 per unit of risk. If you would invest 4,601 in Taylor Calvin B on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Taylor Calvin B or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taylor Calvin B vs. Lyons Bancorp
Performance |
| Timeline |
| Taylor Calvin B |
| Lyons Bancorp |
Taylor Calvin and Lyons Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taylor Calvin and Lyons Bancorp
The main advantage of trading using opposite Taylor Calvin and Lyons Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taylor Calvin position performs unexpectedly, Lyons 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 Lyons Bancorp will offset losses from the drop in Lyons Bancorp's long position.| Taylor Calvin vs. National Capital Bank | Taylor Calvin vs. Bank of Idaho | Taylor Calvin vs. Community Heritage Financial | Taylor Calvin vs. First Community Financial |
| Lyons Bancorp vs. FS Bancorp | Lyons Bancorp vs. Eastern Michigan Financial | Lyons Bancorp vs. Grand River Commerce | Lyons Bancorp vs. Bank of Botetourt |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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