Correlation Between Bancorp Of and Farmers
Can any of the company-specific risk be diversified away by investing in both Bancorp Of and Farmers 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 Bancorp Of and Farmers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bancorp Of New and Farmers and Merchants, you can compare the effects of market volatilities on Bancorp Of and Farmers 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 Bancorp Of with a short position of Farmers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bancorp Of and Farmers.
Diversification Opportunities for Bancorp Of and Farmers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bancorp and Farmers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bancorp Of New and Farmers and Merchants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers and Merchants and Bancorp Of 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 Bancorp Of New are associated (or correlated) with Farmers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers and Merchants has no effect on the direction of Bancorp Of i.e., Bancorp Of and Farmers go up and down completely randomly.
Pair Corralation between Bancorp Of and Farmers
If you would invest 2,050 in Farmers and Merchants on January 24, 2024 and sell it today you would lose (403.00) from holding Farmers and Merchants or give up 19.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bancorp Of New vs. Farmers and Merchants
Performance |
| Timeline |
| Bancorp Of New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Farmers and Merchants |
Bancorp Of and Farmers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bancorp Of and Farmers
The main advantage of trading using opposite Bancorp Of and Farmers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bancorp Of position performs unexpectedly, Farmers 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 Farmers will offset losses from the drop in Farmers' long position.| Bancorp Of vs. Anterix | Bancorp Of vs. CF Industries Holdings | Bancorp Of vs. Valhi Inc | Bancorp Of vs. Grupo Televisa SAB |
| Farmers vs. First Horizon | Farmers vs. First Horizon | Farmers vs. KB Financial Group | Farmers vs. Banco Santander Brasil |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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