Correlation Between Virginia National and Amerant Bancorp
Can any of the company-specific risk be diversified away by investing in both Virginia National and Amerant 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 Virginia National and Amerant Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virginia National Bankshares and Amerant Bancorp, you can compare the effects of market volatilities on Virginia National and Amerant 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 Virginia National with a short position of Amerant Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virginia National and Amerant Bancorp.
Diversification Opportunities for Virginia National and Amerant Bancorp
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virginia and Amerant is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Virginia National Bankshares and Amerant Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amerant Bancorp and Virginia National 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 Virginia National Bankshares are associated (or correlated) with Amerant Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amerant Bancorp has no effect on the direction of Virginia National i.e., Virginia National and Amerant Bancorp go up and down completely randomly.
Pair Corralation between Virginia National and Amerant Bancorp
Given the investment horizon of 90 days Virginia National Bankshares is expected to generate 0.88 times more return on investment than Amerant Bancorp. However, Virginia National Bankshares is 1.13 times less risky than Amerant Bancorp. It trades about 0.04 of its potential returns per unit of risk. Amerant Bancorp is currently generating about 0.01 per unit of risk. If you would invest 3,236 in Virginia National Bankshares on August 25, 2024 and sell it today you would earn a total of 1,022 from holding Virginia National Bankshares or generate 31.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virginia National Bankshares vs. Amerant Bancorp
Performance |
| Timeline |
| Virginia National |
| Amerant Bancorp |
Virginia National and Amerant Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virginia National and Amerant Bancorp
The main advantage of trading using opposite Virginia National and Amerant Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virginia National position performs unexpectedly, Amerant 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 Amerant Bancorp will offset losses from the drop in Amerant Bancorp's long position.| Virginia National vs. Fifth Third Bancorp | Virginia National vs. Zions Bancorporation | Virginia National vs. Huntington Bancshares Incorporated | Virginia National vs. PNC Financial Services |
| Amerant Bancorp vs. Affinity Bancshares | Amerant Bancorp vs. Southern California Bancorp | Amerant Bancorp vs. Auburn National Bancorporation | Amerant Bancorp vs. BayCom Corp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |