Correlation Between Peak Bancorp and WTB Financial

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

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

Diversification Opportunities for Peak Bancorp and WTB Financial

0.0

Correlation Coefficient

Peak Bancorp  WTB Financial

Pay attention - limited upside

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

Pair Corralation between Peak Bancorp and WTB Financial

If you would invest  29,874  in WTB Financial on December 26, 2024 and sell it today you would earn a total of  724.00  from holding WTB Financial or generate 2.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Peak Bancorp  vs.  WTB Financial

Peak Bancorp

Risk-Adjusted Performance

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.

WTB Financial

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in WTB Financial are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, WTB Financial is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Peak Bancorp and WTB Financial

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

The idea behind Peak Bancorp and WTB Financial 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.