Correlation Between JD Bancshares and Generations Bancorp

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

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

Diversification Opportunities for JD Bancshares and Generations Bancorp

0.45

Correlation Coefficient

JD Bancshares  Generations Bancorp

Very weak diversification

The 3 months correlation between JDVB and Generations is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding JD Bancshares and Generations Bancorp NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generations Bancorp and JD Bancshares 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 JD Bancshares are associated (or correlated) with Generations Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generations Bancorp has no effect on the direction of JD Bancshares i.e., JD Bancshares and Generations Bancorp go up and down completely randomly.

Pair Corralation between JD Bancshares and Generations Bancorp

If you would invest  2,350  in JD Bancshares on September 20, 2024 and sell it today you would earn a total of  99.00  from holding JD Bancshares or generate 4.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

JD Bancshares  vs.  Generations Bancorp NY

JD Bancshares

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in JD Bancshares are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, JD Bancshares may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Generations Bancorp

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Generations Bancorp NY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal basic indicators, Generations Bancorp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with JD Bancshares and Generations Bancorp

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

The idea behind JD Bancshares and Generations Bancorp NY 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.