Correlation Between Village Bank and Fulton Financial
Can any of the company-specific risk be diversified away by investing in both Village Bank and Fulton Financial 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 Village Bank and Fulton Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Village Bank and and Fulton Financial, you can compare the effects of market volatilities on Village Bank and Fulton Financial 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 Village Bank with a short position of Fulton Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Village Bank and Fulton Financial.
Diversification Opportunities for Village Bank and Fulton Financial
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Village and Fulton is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Village Bank and and Fulton Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulton Financial and Village Bank 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 Village Bank and are associated (or correlated) with Fulton Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulton Financial has no effect on the direction of Village Bank i.e., Village Bank and Fulton Financial go up and down completely randomly.
Pair Corralation between Village Bank and Fulton Financial
Given the investment horizon of 90 days Village Bank and is expected to generate 0.35 times more return on investment than Fulton Financial. However, Village Bank and is 2.86 times less risky than Fulton Financial. It trades about 0.01 of its potential returns per unit of risk. Fulton Financial is currently generating about -0.13 per unit of risk. If you would invest 7,785 in Village Bank and on October 26, 2024 and sell it today you would earn a total of 5.00 from holding Village Bank and or generate 0.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.89% |
| Values | Daily Returns |
Village Bank and vs. Fulton Financial
Performance |
| Timeline |
| Village Bank |
| Fulton Financial |
Village Bank and Fulton Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Village Bank and Fulton Financial
The main advantage of trading using opposite Village Bank and Fulton Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Village Bank position performs unexpectedly, Fulton Financial 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 Fulton Financial will offset losses from the drop in Fulton Financial's long position.| Village Bank vs. Home Federal Bancorp | Village Bank vs. Magyar Bancorp | Village Bank vs. First Northwest Bancorp | Village Bank vs. First Financial Northwest |
| Fulton Financial vs. First Citizens BancShares | Fulton Financial vs. Fifth Third Bancorp | Fulton Financial vs. Dime Community Bancshares | Fulton Financial vs. Heartland Financial USA |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |