Correlation Between Westamerica Bancorporation and AMB Financial
Can any of the company-specific risk be diversified away by investing in both Westamerica Bancorporation and AMB 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 Westamerica Bancorporation and AMB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westamerica Bancorporation and AMB Financial Corp, you can compare the effects of market volatilities on Westamerica Bancorporation and AMB 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 Westamerica Bancorporation with a short position of AMB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westamerica Bancorporation and AMB Financial.
Diversification Opportunities for Westamerica Bancorporation and AMB Financial
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Westamerica and AMB is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Westamerica Bancorp. and AMB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMB Financial Corp and Westamerica Bancorporation 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 Westamerica Bancorporation are associated (or correlated) with AMB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMB Financial Corp has no effect on the direction of Westamerica Bancorporation i.e., Westamerica Bancorporation and AMB Financial go up and down completely randomly.
Pair Corralation between Westamerica Bancorporation and AMB Financial
If you would invest 4,847 in Westamerica Bancorporation on September 3, 2024 and sell it today you would earn a total of 876.00 from holding Westamerica Bancorporation or generate 18.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
Westamerica Bancorp. vs. AMB Financial Corp
Performance |
| Timeline |
| Westamerica Bancorporation |
| AMB Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Westamerica Bancorporation and AMB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westamerica Bancorporation and AMB Financial
The main advantage of trading using opposite Westamerica Bancorporation and AMB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westamerica Bancorporation position performs unexpectedly, AMB 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 AMB Financial will offset losses from the drop in AMB Financial's long position.| Westamerica Bancorporation vs. Heritage Commerce Corp | Westamerica Bancorporation vs. Heritage Financial | Westamerica Bancorporation vs. Penns Woods Bancorp | Westamerica Bancorporation vs. 1st Source |
| AMB Financial vs. First Community | AMB Financial vs. Community West Bancshares | AMB Financial vs. First Financial Northwest | AMB Financial vs. First Northwest 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world |