Correlation Between ACNB and Veritex Holdings
Can any of the company-specific risk be diversified away by investing in both ACNB and Veritex Holdings 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 ACNB and Veritex Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACNB Corporation and Veritex Holdings, you can compare the effects of market volatilities on ACNB and Veritex Holdings 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 ACNB with a short position of Veritex Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACNB and Veritex Holdings.
Diversification Opportunities for ACNB and Veritex Holdings
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ACNB and Veritex is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ACNB Corp. and Veritex Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veritex Holdings and ACNB 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 ACNB Corporation are associated (or correlated) with Veritex Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veritex Holdings has no effect on the direction of ACNB i.e., ACNB and Veritex Holdings go up and down completely randomly.
Pair Corralation between ACNB and Veritex Holdings
Given the investment horizon of 90 days ACNB Corporation is expected to under-perform the Veritex Holdings. In addition to that, ACNB is 1.62 times more volatile than Veritex Holdings. It trades about -0.03 of its total potential returns per unit of risk. Veritex Holdings is currently generating about 0.13 per unit of volatility. If you would invest 1,980 in Veritex Holdings on January 25, 2024 and sell it today you would earn a total of 99.00 from holding Veritex Holdings or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACNB Corp. vs. Veritex Holdings
Performance |
| Timeline |
| ACNB |
| Veritex Holdings |
ACNB and Veritex Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACNB and Veritex Holdings
The main advantage of trading using opposite ACNB and Veritex Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACNB position performs unexpectedly, Veritex Holdings 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 Veritex Holdings will offset losses from the drop in Veritex Holdings' long position.| ACNB vs. Bankwell Financial Group | ACNB vs. Codorus Valley Bancorp | ACNB vs. Ames National | ACNB vs. Chemung Financial Corp |
| Veritex Holdings vs. Finward Bancorp | Veritex Holdings vs. Franklin Financial Services | Veritex Holdings vs. Home Bancorp | Veritex Holdings vs. LINKBANCORP |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |