Correlation Between Astoria Financial and Embassy Bancorp
Can any of the company-specific risk be diversified away by investing in both Astoria Financial and Embassy Bancorp 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 Embassy Bancorp 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 Embassy Bancorp, you can compare the effects of market volatilities on Astoria Financial and Embassy Bancorp 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 Embassy Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astoria Financial and Embassy Bancorp.
Diversification Opportunities for Astoria Financial and Embassy Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Astoria and Embassy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Astoria Financial Corp and Embassy Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embassy Bancorp 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 Embassy Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embassy Bancorp has no effect on the direction of Astoria Financial i.e., Astoria Financial and Embassy Bancorp go up and down completely randomly.
Pair Corralation between Astoria Financial and Embassy Bancorp
If you would invest (100.00) in Astoria Financial Corp on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Astoria Financial Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Astoria Financial Corp vs. Embassy Bancorp
Performance |
| Timeline |
| Astoria Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Embassy Bancorp |
Astoria Financial and Embassy Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astoria Financial and Embassy Bancorp
The main advantage of trading using opposite Astoria Financial and Embassy Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astoria Financial position performs unexpectedly, Embassy Bancorp 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 Embassy Bancorp will offset losses from the drop in Embassy Bancorp's long position.| Astoria Financial vs. Weyco Group | Astoria Financial vs. Steven Madden | Astoria Financial vs. Church Dwight | Astoria Financial vs. RCS MediaGroup SpA |
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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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