Correlation Between Westbury Bancorp and John Marshall
Can any of the company-specific risk be diversified away by investing in both Westbury Bancorp and John Marshall 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 Westbury Bancorp and John Marshall into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westbury Bancorp and John Marshall Bancorp, you can compare the effects of market volatilities on Westbury Bancorp and John Marshall 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 Westbury Bancorp with a short position of John Marshall. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westbury Bancorp and John Marshall.
Diversification Opportunities for Westbury Bancorp and John Marshall
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Westbury and John is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Westbury Bancorp and John Marshall Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Marshall Bancorp and Westbury Bancorp 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 Westbury Bancorp are associated (or correlated) with John Marshall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Marshall Bancorp has no effect on the direction of Westbury Bancorp i.e., Westbury Bancorp and John Marshall go up and down completely randomly.
Pair Corralation between Westbury Bancorp and John Marshall
If you would invest 1,727 in John Marshall Bancorp on September 1, 2024 and sell it today you would earn a total of 582.00 from holding John Marshall Bancorp or generate 33.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
Westbury Bancorp vs. John Marshall Bancorp
Performance |
| Timeline |
| Westbury Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| John Marshall Bancorp |
Westbury Bancorp and John Marshall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westbury Bancorp and John Marshall
The main advantage of trading using opposite Westbury Bancorp and John Marshall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westbury Bancorp position performs unexpectedly, John Marshall 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 John Marshall will offset losses from the drop in John Marshall's long position.| Westbury Bancorp vs. Home Federal Bancorp | Westbury Bancorp vs. First Northwest Bancorp | Westbury Bancorp vs. First Community | Westbury Bancorp vs. Oak Valley Bancorp |
| John Marshall vs. Home Federal Bancorp | John Marshall vs. Magyar Bancorp | John Marshall vs. ChoiceOne Financial Services | John Marshall vs. Affinity 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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