Correlation Between Wayne Savings and Quaint Oak
Can any of the company-specific risk be diversified away by investing in both Wayne Savings and Quaint Oak 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 Wayne Savings and Quaint Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wayne Savings Bancshares and Quaint Oak Bancorp, you can compare the effects of market volatilities on Wayne Savings and Quaint Oak 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 Wayne Savings with a short position of Quaint Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wayne Savings and Quaint Oak.
Diversification Opportunities for Wayne Savings and Quaint Oak
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wayne and Quaint is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wayne Savings Bancshares and Quaint Oak Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quaint Oak Bancorp and Wayne Savings 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 Wayne Savings Bancshares are associated (or correlated) with Quaint Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quaint Oak Bancorp has no effect on the direction of Wayne Savings i.e., Wayne Savings and Quaint Oak go up and down completely randomly.
Pair Corralation between Wayne Savings and Quaint Oak
If you would invest 2,841 in Wayne Savings Bancshares on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Wayne Savings Bancshares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Wayne Savings Bancshares vs. Quaint Oak Bancorp
Performance |
| Timeline |
| Wayne Savings Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Quaint Oak Bancorp |
Wayne Savings and Quaint Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wayne Savings and Quaint Oak
The main advantage of trading using opposite Wayne Savings and Quaint Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wayne Savings position performs unexpectedly, Quaint Oak 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 Quaint Oak will offset losses from the drop in Quaint Oak's long position.| Wayne Savings vs. First IC | Wayne Savings vs. CCFNB Bancorp | Wayne Savings vs. Glen Burnie Bancorp | Wayne Savings vs. Main Street Financial |
| Quaint Oak vs. Home Federal Bancorp | Quaint Oak vs. Community West Bancshares | Quaint Oak vs. Magyar Bancorp | Quaint Oak vs. IF 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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