Correlation Between Sterling Bancorp and PSB Holdings
Can any of the company-specific risk be diversified away by investing in both Sterling Bancorp and PSB 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 Sterling Bancorp and PSB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sterling Bancorp and PSB Holdings, you can compare the effects of market volatilities on Sterling Bancorp and PSB 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 Sterling Bancorp with a short position of PSB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sterling Bancorp and PSB Holdings.
Diversification Opportunities for Sterling Bancorp and PSB Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sterling and PSB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sterling Bancorp and PSB Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSB Holdings and Sterling Bancorp 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 Sterling Bancorp are associated (or correlated) with PSB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSB Holdings has no effect on the direction of Sterling Bancorp i.e., Sterling Bancorp and PSB Holdings go up and down completely randomly.
Pair Corralation between Sterling Bancorp and PSB Holdings
If you would invest 0.00 in PSB Holdings on January 16, 2024 and sell it today you would earn a total of 0.00 from holding PSB Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sterling Bancorp vs. PSB Holdings
Performance |
| Timeline |
| Sterling Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PSB Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sterling Bancorp and PSB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sterling Bancorp and PSB Holdings
The main advantage of trading using opposite Sterling Bancorp and PSB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sterling Bancorp position performs unexpectedly, PSB 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 PSB Holdings will offset losses from the drop in PSB Holdings' long position.| Sterling Bancorp vs. ScanSource | Sterling Bancorp vs. Western Digital | Sterling Bancorp vs. Beyond Inc | Sterling Bancorp vs. Nextplat Corp |
| PSB Holdings vs. The Wendys Co | PSB Holdings vs. Oasis Hotel Resort | PSB Holdings vs. Ryman Hospitality Properties | PSB Holdings vs. BJs Restaurants |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |