Correlation Between Astoria Financial and Commercial Bancshares
Can any of the company-specific risk be diversified away by investing in both Astoria Financial and Commercial Bancshares 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 Astoria Financial and Commercial Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astoria Financial Corp and Commercial Bancshares OH, you can compare the effects of market volatilities on Astoria Financial and Commercial Bancshares 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 Astoria Financial with a short position of Commercial Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Financial and Commercial Bancshares.
Diversification Opportunities for Astoria Financial and Commercial Bancshares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astoria and Commercial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Financial Corp and Commercial Bancshares OH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial Bancshares and Astoria Financial 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 Astoria Financial Corp are associated (or correlated) with Commercial Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial Bancshares has no effect on the direction of Astoria Financial i.e., Astoria Financial and Commercial Bancshares go up and down completely randomly.
Pair Corralation between Astoria Financial and Commercial Bancshares
If you would invest (100.00) in Commercial Bancshares OH on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Commercial Bancshares OH or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astoria Financial Corp vs. Commercial Bancshares OH
Performance |
| Timeline |
| Astoria Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Commercial Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Astoria Financial and Commercial Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Financial and Commercial Bancshares
The main advantage of trading using opposite Astoria Financial and Commercial Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Financial position performs unexpectedly, Commercial Bancshares 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 Commercial Bancshares will offset losses from the drop in Commercial Bancshares' long position.| Astoria Financial vs. Advanced Micro Devices | Astoria Financial vs. Arrow Electronics | Astoria Financial vs. Pinterest | Astoria Financial vs. IPG Photonics |
| Commercial Bancshares vs. NETGEAR | Commercial Bancshares vs. Arrow Electronics | Commercial Bancshares vs. KNOT Offshore Partners | Commercial Bancshares vs. Amkor Technology |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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