Correlation Between Equitable Financial and HarborOne Bancorp
Can any of the company-specific risk be diversified away by investing in both Equitable Financial and HarborOne 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 Equitable Financial and HarborOne Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equitable Financial Corp and HarborOne Bancorp, you can compare the effects of market volatilities on Equitable Financial and HarborOne 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 Equitable Financial with a short position of HarborOne Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equitable Financial and HarborOne Bancorp.
Diversification Opportunities for Equitable Financial and HarborOne Bancorp
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Equitable and HarborOne is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Equitable Financial Corp and HarborOne Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HarborOne Bancorp and Equitable 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 Equitable Financial Corp are associated (or correlated) with HarborOne Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HarborOne Bancorp has no effect on the direction of Equitable Financial i.e., Equitable Financial and HarborOne Bancorp go up and down completely randomly.
Pair Corralation between Equitable Financial and HarborOne Bancorp
If you would invest 1,008 in HarborOne Bancorp on January 25, 2024 and sell it today you would lose (3.00) from holding HarborOne Bancorp or give up 0.3% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.76% |
Values | Daily Returns |
Equitable Financial Corp vs. HarborOne Bancorp
Performance |
Timeline |
Equitable Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HarborOne Bancorp |
Equitable Financial and HarborOne Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Equitable Financial and HarborOne Bancorp
The main advantage of trading using opposite Equitable Financial and HarborOne Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equitable Financial position performs unexpectedly, HarborOne 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 HarborOne Bancorp will offset losses from the drop in HarborOne Bancorp's long position.Equitable Financial vs. CoastalSouth Bancshares | Equitable Financial vs. Bank of San | Equitable Financial vs. Citizens Bancorp of | Equitable Financial vs. Mountain Commerce Bancorp |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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