Correlation Between Peak Bancorp and Kish Bancorp

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

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

Diversification Opportunities for Peak Bancorp and Kish Bancorp

-0.66

Correlation Coefficient

Peak Bancorp  Kish Bancorp

Excellent diversification

The 3 months correlation between Peak and Kish is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Peak Bancorp and Kish Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kish Bancorp and Peak 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 Peak Bancorp are associated (or correlated) with Kish Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kish Bancorp has no effect on the direction of Peak Bancorp i.e., Peak Bancorp and Kish Bancorp go up and down completely randomly.

Pair Corralation between Peak Bancorp and Kish Bancorp

If you would invest  3,047  in Kish Bancorp on September 4, 2024 and sell it today you would earn a total of  153.00  from holding Kish Bancorp or generate 5.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.52%
Values	Daily Returns

Peak Bancorp  vs.  Kish Bancorp

Peak Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Peak Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Peak Bancorp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Kish Bancorp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kish Bancorp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, Kish Bancorp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Peak Bancorp and Kish Bancorp

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

The idea behind Peak Bancorp and Kish 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.