Correlation Between Uwharrie Capital and Infinity Bank
Can any of the company-specific risk be diversified away by investing in both Uwharrie Capital and Infinity Bank 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 Uwharrie Capital and Infinity Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uwharrie Capital Corp and Infinity Bank, you can compare the effects of market volatilities on Uwharrie Capital and Infinity Bank 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 Uwharrie Capital with a short position of Infinity Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uwharrie Capital and Infinity Bank.
Diversification Opportunities for Uwharrie Capital and Infinity Bank
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Uwharrie and Infinity is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Uwharrie Capital Corp and Infinity Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinity Bank and Uwharrie Capital 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 Uwharrie Capital Corp are associated (or correlated) with Infinity Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinity Bank has no effect on the direction of Uwharrie Capital i.e., Uwharrie Capital and Infinity Bank go up and down completely randomly.
Pair Corralation between Uwharrie Capital and Infinity Bank
Given the investment horizon of 90 days Uwharrie Capital Corp is expected to generate 1.96 times more return on investment than Infinity Bank. However, Uwharrie Capital is 1.96 times more volatile than Infinity Bank. It trades about 0.03 of its potential returns per unit of risk. Infinity Bank is currently generating about 0.04 per unit of risk. If you would invest 700.00 in Uwharrie Capital Corp on September 3, 2024 and sell it today you would earn a total of 140.00 from holding Uwharrie Capital Corp or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 89.28% |
| Values | Daily Returns |
Uwharrie Capital Corp vs. Infinity Bank
Performance |
| Timeline |
| Uwharrie Capital Corp |
| Infinity Bank |
Uwharrie Capital and Infinity Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uwharrie Capital and Infinity Bank
The main advantage of trading using opposite Uwharrie Capital and Infinity Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwharrie Capital position performs unexpectedly, Infinity Bank 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 Infinity Bank will offset losses from the drop in Infinity Bank's long position.| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie Bancorp |
| Infinity Bank vs. Bank Mandiri Persero | Infinity Bank vs. Century Financial Corp | Infinity Bank vs. Bank of Botetourt | Infinity Bank vs. FS 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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