Correlation Between 7GC Holdings and Peak Bancorp
Can any of the company-specific risk be diversified away by investing in both 7GC Holdings and Peak 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 7GC Holdings and Peak Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 7GC Holdings Co and Peak Bancorp, you can compare the effects of market volatilities on 7GC Holdings and Peak 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 7GC Holdings with a short position of Peak Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 7GC Holdings and Peak Bancorp.
Diversification Opportunities for 7GC Holdings and Peak Bancorp
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 7GC and Peak is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding 7GC Holdings Co and Peak Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peak Bancorp and 7GC Holdings 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 7GC Holdings Co are associated (or correlated) with Peak Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peak Bancorp has no effect on the direction of 7GC Holdings i.e., 7GC Holdings and Peak Bancorp go up and down completely randomly.
Pair Corralation between 7GC Holdings and Peak Bancorp
Considering the 90-day investment horizon 7GC Holdings Co is expected to generate 0.25 times more return on investment than Peak Bancorp. However, 7GC Holdings Co is 3.97 times less risky than Peak Bancorp. It trades about -0.02 of its potential returns per unit of risk. Peak Bancorp is currently generating about -0.01 per unit of risk. If you would invest 1,050 in 7GC Holdings Co on September 12, 2024 and sell it today you would lose (3.00) from holding 7GC Holdings Co or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
7GC Holdings Co vs. Peak Bancorp
Performance |
| Timeline |
| 7GC Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Peak Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
7GC Holdings and Peak Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 7GC Holdings and Peak Bancorp
The main advantage of trading using opposite 7GC Holdings and Peak Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 7GC Holdings position performs unexpectedly, Peak 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 Peak Bancorp will offset losses from the drop in Peak Bancorp's long position.The idea behind 7GC Holdings Co and Peak Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Peak Bancorp vs. MVB Financial Corp | Peak Bancorp vs. Finward Bancorp | Peak Bancorp vs. First Community | Peak 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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