Correlation Between Kearny Financial and Equity Bancshares,

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

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

Diversification Opportunities for Kearny Financial and Equity Bancshares,

0.86

Correlation Coefficient

Kearny Financial  Equity Bancshares,

Very poor diversification

The 3 months correlation between Kearny and Equity is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kearny Financial Corp and Equity Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Bancshares, and Kearny 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 Kearny Financial Corp are associated (or correlated) with Equity Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Bancshares, has no effect on the direction of Kearny Financial i.e., Kearny Financial and Equity Bancshares, go up and down completely randomly.

Pair Corralation between Kearny Financial and Equity Bancshares,

Given the investment horizon of 90 days Kearny Financial Corp is expected to under-perform the Equity Bancshares,. In addition to that, Kearny Financial is 1.29 times more volatile than Equity Bancshares,. It trades about -0.05 of its total potential returns per unit of risk. Equity Bancshares, is currently generating about -0.04 per unit of volatility. If you would invest  4,243  in Equity Bancshares, on December 29, 2024 and sell it today you would lose (205.00) from holding Equity Bancshares, or give up 4.83% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Kearny Financial Corp  vs.  Equity Bancshares,

Kearny Financial Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kearny Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Equity Bancshares,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Equity Bancshares, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Equity Bancshares, is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Kearny Financial and Equity Bancshares,

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

The idea behind Kearny Financial Corp and Equity Bancshares, 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.