Correlation Between United Tennessee and Andover Bancorp
Can any of the company-specific risk be diversified away by investing in both United Tennessee and Andover 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 Tennessee and Andover Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Tennessee Bankshares and Andover Bancorp, you can compare the effects of market volatilities on United Tennessee and Andover 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 Tennessee with a short position of Andover Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Tennessee and Andover Bancorp.
Diversification Opportunities for United Tennessee and Andover Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Andover is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Tennessee Bankshares and Andover Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andover Bancorp and United Tennessee 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 Tennessee Bankshares are associated (or correlated) with Andover Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andover Bancorp has no effect on the direction of United Tennessee i.e., United Tennessee and Andover Bancorp go up and down completely randomly.
Pair Corralation between United Tennessee and Andover Bancorp
If you would invest (100.00) in United Tennessee Bankshares on November 9, 2024 and sell it today you would earn a total of 100.00 from holding United Tennessee Bankshares or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United Tennessee Bankshares vs. Andover Bancorp
Performance |
| Timeline |
| United Tennessee Ban |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Andover Bancorp |
United Tennessee and Andover Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Tennessee and Andover Bancorp
The main advantage of trading using opposite United Tennessee and Andover Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Tennessee position performs unexpectedly, Andover 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 Andover Bancorp will offset losses from the drop in Andover Bancorp's long position.| United Tennessee vs. United Bancorporation of | United Tennessee vs. Tri County Financial Group | United Tennessee vs. Quaint Oak 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |