Correlation Between Northwest Bancshares and Bancorp Of
Can any of the company-specific risk be diversified away by investing in both Northwest Bancshares and Bancorp Of 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 Northwest Bancshares and Bancorp Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northwest Bancshares and Bancorp Of New, you can compare the effects of market volatilities on Northwest Bancshares and Bancorp Of 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 Northwest Bancshares with a short position of Bancorp Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northwest Bancshares and Bancorp Of.
Diversification Opportunities for Northwest Bancshares and Bancorp Of
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Northwest and Bancorp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Northwest Bancshares and Bancorp Of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bancorp Of New and Northwest Bancshares 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 Northwest Bancshares are associated (or correlated) with Bancorp Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bancorp Of New has no effect on the direction of Northwest Bancshares i.e., Northwest Bancshares and Bancorp Of go up and down completely randomly.
Pair Corralation between Northwest Bancshares and Bancorp Of
If you would invest (100.00) in Bancorp Of New on January 24, 2024 and sell it today you would earn a total of 100.00 from holding Bancorp Of New 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 |
Northwest Bancshares vs. Bancorp Of New
Performance |
| Timeline |
| Northwest Bancshares |
| Bancorp Of New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Northwest Bancshares and Bancorp Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northwest Bancshares and Bancorp Of
The main advantage of trading using opposite Northwest Bancshares and Bancorp Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northwest Bancshares position performs unexpectedly, Bancorp Of 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 Bancorp Of will offset losses from the drop in Bancorp Of's long position.| Northwest Bancshares vs. Cullman Bancorp | Northwest Bancshares vs. Home Federal Bancorp | Northwest Bancshares vs. First Financial Northwest | Northwest Bancshares vs. First Northwest Bancorp |
| Bancorp Of vs. Anterix | Bancorp Of vs. CF Industries Holdings | Bancorp Of vs. Valhi Inc | Bancorp Of vs. Grupo Televisa SAB |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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