Correlation Between United Bancorporation and Coeur DAlene
Can any of the company-specific risk be diversified away by investing in both United Bancorporation and Coeur DAlene 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 United Bancorporation and Coeur DAlene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Bancorporation of and Coeur dAlene Bancorp, you can compare the effects of market volatilities on United Bancorporation and Coeur DAlene 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 United Bancorporation with a short position of Coeur DAlene. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Bancorporation and Coeur DAlene.
Diversification Opportunities for United Bancorporation and Coeur DAlene
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between United and Coeur is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding United Bancorp. of and Coeur dAlene Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coeur dAlene Bancorp and United Bancorporation 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 United Bancorporation of are associated (or correlated) with Coeur DAlene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coeur dAlene Bancorp has no effect on the direction of United Bancorporation i.e., United Bancorporation and Coeur DAlene go up and down completely randomly.
Pair Corralation between United Bancorporation and Coeur DAlene
Given the investment horizon of 90 days United Bancorporation of is expected to generate 0.76 times more return on investment than Coeur DAlene. However, United Bancorporation of is 1.32 times less risky than Coeur DAlene. It trades about 0.16 of its potential returns per unit of risk. Coeur dAlene Bancorp is currently generating about 0.11 per unit of risk. If you would invest 5,025 in United Bancorporation of on September 25, 2024 and sell it today you would earn a total of 675.00 from holding United Bancorporation of or generate 13.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.44% |
Values | Daily Returns |
United Bancorp. of vs. Coeur dAlene Bancorp
Performance |
Timeline |
United Bancorporation |
Coeur dAlene Bancorp |
United Bancorporation and Coeur DAlene Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with United Bancorporation and Coeur DAlene
The main advantage of trading using opposite United Bancorporation and Coeur DAlene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Bancorporation position performs unexpectedly, Coeur DAlene 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 Coeur DAlene will offset losses from the drop in Coeur DAlene's long position.United Bancorporation vs. MF Bancorp | United Bancorporation vs. Merchants Marine Bancorp | United Bancorporation vs. MNB Holdings Corp | United Bancorporation vs. Security Federal |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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