Correlation Between United Bancorporation and US Metro
Can any of the company-specific risk be diversified away by investing in both United Bancorporation and US Metro 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 US Metro 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 US Metro Bancorp, you can compare the effects of market volatilities on United Bancorporation and US Metro 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 US Metro. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Bancorporation and US Metro.
Diversification Opportunities for United Bancorporation and US Metro
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and USMT is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding United Bancorp. of and US Metro Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Metro Bancorp 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 US Metro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Metro Bancorp has no effect on the direction of United Bancorporation i.e., United Bancorporation and US Metro go up and down completely randomly.
Pair Corralation between United Bancorporation and US Metro
If you would invest 5,480 in United Bancorporation of on August 28, 2024 and sell it today you would earn a total of 420.00 from holding United Bancorporation of or generate 7.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
United Bancorp. of vs. US Metro Bancorp
Performance |
| Timeline |
| United Bancorporation |
| US Metro Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Bancorporation and US Metro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Bancorporation and US Metro
The main advantage of trading using opposite United Bancorporation and US Metro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Bancorporation position performs unexpectedly, US Metro 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 US Metro will offset losses from the drop in US Metro's long position.| United Bancorporation vs. MF Bancorp | United Bancorporation vs. Merchants Marine Bancorp | United Bancorporation vs. MNB Holdings Corp | United Bancorporation vs. Security Federal |
| US Metro vs. CMUV Bancorp | US Metro vs. Pioneer Bankcorp | US Metro vs. Summit Bancshares | US Metro vs. Liberty Northwest 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |