Correlation Between United Bancorporation and Tri County
Can any of the company-specific risk be diversified away by investing in both United Bancorporation and Tri County 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 United Bancorporation and Tri County into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Bancorporation of and Tri County Financial Group, you can compare the effects of market volatilities on United Bancorporation and Tri County 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 United Bancorporation with a short position of Tri County. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Bancorporation and Tri County.
Diversification Opportunities for United Bancorporation and Tri County
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Tri is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding United Bancorp. of and Tri County Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tri County Financial and United Bancorporation 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 United Bancorporation of are associated (or correlated) with Tri County. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tri County Financial has no effect on the direction of United Bancorporation i.e., United Bancorporation and Tri County go up and down completely randomly.
Pair Corralation between United Bancorporation and Tri County
Given the investment horizon of 90 days United Bancorporation of is expected to under-perform the Tri County. In addition to that, United Bancorporation is 1.31 times more volatile than Tri County Financial Group. It trades about -0.08 of its total potential returns per unit of risk. Tri County Financial Group is currently generating about 0.21 per unit of volatility. If you would invest 4,250 in Tri County Financial Group on September 13, 2024 and sell it today you would earn a total of 140.00 from holding Tri County Financial Group or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
United Bancorp. of vs. Tri County Financial Group
Performance |
| Timeline |
| United Bancorporation |
| Tri County Financial |
United Bancorporation and Tri County Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Bancorporation and Tri County
The main advantage of trading using opposite United Bancorporation and Tri County positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Bancorporation position performs unexpectedly, Tri County 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 Tri County will offset losses from the drop in Tri County's long position.| United Bancorporation vs. Freedom Bank of | United Bancorporation vs. HUMANA INC | United Bancorporation vs. Barloworld Ltd ADR | United Bancorporation vs. Morningstar Unconstrained Allocation |
| Tri County vs. Taylor Calvin B | Tri County vs. United Bancorporation of | Tri County vs. Virginia National Bankshares | Tri County vs. Lyons Bancorp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |