Correlation Between Washington Federal and Community Investors
Can any of the company-specific risk be diversified away by investing in both Washington Federal and Community Investors 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 Washington Federal and Community Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Federal and Community Investors Bancorp, you can compare the effects of market volatilities on Washington Federal and Community Investors 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 Washington Federal with a short position of Community Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Federal and Community Investors.
Diversification Opportunities for Washington Federal and Community Investors
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Washington and Community is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Washington Federal and Community Investors Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Community Investors and Washington Federal 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 Washington Federal are associated (or correlated) with Community Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Community Investors has no effect on the direction of Washington Federal i.e., Washington Federal and Community Investors go up and down completely randomly.
Pair Corralation between Washington Federal and Community Investors
If you would invest 1,365 in Washington Federal on August 31, 2024 and sell it today you would earn a total of 438.00 from holding Washington Federal or generate 32.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
Washington Federal vs. Community Investors Bancorp
Performance |
| Timeline |
| Washington Federal |
| Community Investors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Washington Federal and Community Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Federal and Community Investors
The main advantage of trading using opposite Washington Federal and Community Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Federal position performs unexpectedly, Community Investors 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 Community Investors will offset losses from the drop in Community Investors' long position.| Washington Federal vs. KeyCorp | Washington Federal vs. KeyCorp | Washington Federal vs. Fifth Third Bancorp | Washington Federal vs. Citizens Financial Group |
| Community Investors vs. CIB Marine Bancshares | Community Investors vs. United Bancorporation of | Community Investors vs. U I Financial | Community Investors vs. CoastalSouth Bancshares |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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