Correlation Between WCF Bancorp and Bank of Hawaii
Can any of the company-specific risk be diversified away by investing in both WCF Bancorp and Bank of Hawaii 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 WCF Bancorp and Bank of Hawaii into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WCF Bancorp and Bank of Hawaii, you can compare the effects of market volatilities on WCF Bancorp and Bank of Hawaii 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 WCF Bancorp with a short position of Bank of Hawaii. Check out your portfolio center. Please also check ongoing floating volatility patterns of WCF Bancorp and Bank of Hawaii.
Diversification Opportunities for WCF Bancorp and Bank of Hawaii
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WCF and Bank is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding WCF Bancorp and Bank of Hawaii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Hawaii and WCF 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 WCF Bancorp are associated (or correlated) with Bank of Hawaii. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Hawaii has no effect on the direction of WCF Bancorp i.e., WCF Bancorp and Bank of Hawaii go up and down completely randomly.
Pair Corralation between WCF Bancorp and Bank of Hawaii
If you would invest 805.00 in WCF Bancorp on August 29, 2024 and sell it today you would earn a total of 0.00 from holding WCF Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
WCF Bancorp vs. Bank of Hawaii
Performance |
| Timeline |
| WCF Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bank of Hawaii |
WCF Bancorp and Bank of Hawaii Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WCF Bancorp and Bank of Hawaii
The main advantage of trading using opposite WCF Bancorp and Bank of Hawaii positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WCF Bancorp position performs unexpectedly, Bank of Hawaii 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 Bank of Hawaii will offset losses from the drop in Bank of Hawaii's long position.| WCF Bancorp vs. CCSB Financial Corp | WCF Bancorp vs. Delhi Bank Corp | WCF Bancorp vs. Bank of Utica | WCF Bancorp vs. First Community Financial |
| Bank of Hawaii vs. Truist Financial | Bank of Hawaii vs. MetLife Preferred Stock | Bank of Hawaii vs. US 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |