Correlation Between AmeriServ Financial and American National
Can any of the company-specific risk be diversified away by investing in both AmeriServ Financial and American National 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 AmeriServ Financial and American National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AmeriServ Financial and American National Bankshares, you can compare the effects of market volatilities on AmeriServ Financial and American National 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 AmeriServ Financial with a short position of American National. Check out your portfolio center. Please also check ongoing floating volatility patterns of AmeriServ Financial and American National.
Diversification Opportunities for AmeriServ Financial and American National
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AmeriServ and American is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AmeriServ Financial and American National Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American National and AmeriServ 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 AmeriServ Financial are associated (or correlated) with American National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American National has no effect on the direction of AmeriServ Financial i.e., AmeriServ Financial and American National go up and down completely randomly.
Pair Corralation between AmeriServ Financial and American National
Given the investment horizon of 90 days AmeriServ Financial is expected to generate 1.86 times less return on investment than American National. In addition to that, AmeriServ Financial is 1.95 times more volatile than American National Bankshares. It trades about 0.05 of its total potential returns per unit of risk. American National Bankshares is currently generating about 0.16 per unit of volatility. If you would invest 4,657 in American National Bankshares on January 20, 2024 and sell it today you would earn a total of 119.00 from holding American National Bankshares or generate 2.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 36.36% |
Values | Daily Returns |
AmeriServ Financial vs. American National Bankshares
Performance |
Timeline |
AmeriServ Financial |
American National |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AmeriServ Financial and American National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AmeriServ Financial and American National
The main advantage of trading using opposite AmeriServ Financial and American National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AmeriServ Financial position performs unexpectedly, American National 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 American National will offset losses from the drop in American National's long position.AmeriServ Financial vs. Home Bancorp | AmeriServ Financial vs. Heritage Financial | AmeriServ Financial vs. Lake Shore Bancorp |
American National vs. HMN Financial | American National vs. First Northwest Bancorp | American National vs. Community West Bancshares | American National vs. First Financial Northwest |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |