Correlation Between Flushing Financial and Lakeland Bancorp

Can any of the company-specific risk be diversified away by investing in both Flushing Financial and Lakeland 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 Flushing Financial and Lakeland Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Flushing Financial and Lakeland Bancorp, you can compare the effects of market volatilities on Flushing Financial and Lakeland 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 Flushing Financial with a short position of Lakeland Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flushing Financial and Lakeland Bancorp.

Diversification Opportunities for Flushing Financial and Lakeland Bancorp

0.0

Correlation Coefficient

Flushing Financial  Lakeland Bancorp

Pay attention - limited upside

The 3 months correlation between Flushing and Lakeland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flushing Financial and Lakeland Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Bancorp and Flushing 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 Flushing Financial are associated (or correlated) with Lakeland Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Bancorp has no effect on the direction of Flushing Financial i.e., Flushing Financial and Lakeland Bancorp go up and down completely randomly.

Pair Corralation between Flushing Financial and Lakeland Bancorp

If you would invest (100.00) in Lakeland Bancorp on December 30, 2024 and sell it today you would earn a total of  100.00  from holding Lakeland Bancorp 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

Flushing Financial  vs.  Lakeland Bancorp

Flushing Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flushing Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Lakeland Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lakeland Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Lakeland Bancorp is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Flushing Financial and Lakeland Bancorp

The main advantage of trading using opposite Flushing Financial and Lakeland Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flushing Financial position performs unexpectedly, Lakeland 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 Lakeland Bancorp will offset losses from the drop in Lakeland Bancorp's long position.

The idea behind Flushing Financial and Lakeland Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.