Correlation Between United Bankshares and Lakeland Bancorp
Can any of the company-specific risk be diversified away by investing in both United Bankshares and Lakeland 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 United Bankshares and Lakeland Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Bankshares and Lakeland Bancorp, you can compare the effects of market volatilities on United Bankshares and Lakeland 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 United Bankshares with a short position of Lakeland Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Bankshares and Lakeland Bancorp.
Diversification Opportunities for United Bankshares and Lakeland Bancorp
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between United and Lakeland is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding United Bankshares and Lakeland Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Bancorp and United Bankshares 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 Bankshares are associated (or correlated) with Lakeland Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Bancorp has no effect on the direction of United Bankshares i.e., United Bankshares and Lakeland Bancorp go up and down completely randomly.
Pair Corralation between United Bankshares and Lakeland Bancorp
If you would invest 3,845 in United Bankshares on August 28, 2024 and sell it today you would earn a total of 484.00 from holding United Bankshares or generate 12.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
United Bankshares vs. Lakeland Bancorp
Performance |
| Timeline |
| United Bankshares |
| Lakeland Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United Bankshares and Lakeland Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Bankshares and Lakeland Bancorp
The main advantage of trading using opposite United Bankshares and Lakeland Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Bankshares position performs unexpectedly, Lakeland 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 Lakeland Bancorp will offset losses from the drop in Lakeland Bancorp's long position.| United Bankshares vs. Peoples Bancorp | United Bankshares vs. Eagle Bancorp | United Bankshares vs. Northrim BanCorp | United Bankshares vs. Pacific Premier Bancorp |
| Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland Bancorp vs. LINKBANCORP |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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