Correlation Between Valley National and Frontier
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By analyzing existing cross correlation between Valley National Bancorp and Frontier Florida 686, you can compare the effects of market volatilities on Valley National and Frontier 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 Valley National with a short position of Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valley National and Frontier.
Diversification Opportunities for Valley National and Frontier
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Valley and Frontier is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Valley National Bancorp and Frontier Florida 686 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Florida 686 and Valley 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 Valley National Bancorp are associated (or correlated) with Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Florida 686 has no effect on the direction of Valley National i.e., Valley National and Frontier go up and down completely randomly.
Pair Corralation between Valley National and Frontier
Considering the 90-day investment horizon Valley National Bancorp is expected to generate 2.46 times more return on investment than Frontier. However, Valley National is 2.46 times more volatile than Frontier Florida 686. It trades about 0.03 of its potential returns per unit of risk. Frontier Florida 686 is currently generating about -0.01 per unit of risk. If you would invest 791.00 in Valley National Bancorp on December 10, 2024 and sell it today you would earn a total of 107.00 from holding Valley National Bancorp or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.64% |
| Values | Daily Returns |
Valley National Bancorp vs. Frontier Florida 686
Performance |
| Timeline |
| Valley National Bancorp |
| Frontier Florida 686 |
Valley National and Frontier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valley National and Frontier
The main advantage of trading using opposite Valley National and Frontier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valley National position performs unexpectedly, Frontier 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 Frontier will offset losses from the drop in Frontier's long position.| Valley National vs. Fulton Financial | ||
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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