Correlation Between Lakeland Bancorp and First Guaranty
Can any of the company-specific risk be diversified away by investing in both Lakeland Bancorp and First Guaranty 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 Lakeland Bancorp and First Guaranty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Bancorp and First Guaranty Bancshares, you can compare the effects of market volatilities on Lakeland Bancorp and First Guaranty 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 Lakeland Bancorp with a short position of First Guaranty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Bancorp and First Guaranty.
Diversification Opportunities for Lakeland Bancorp and First Guaranty
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lakeland and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Bancorp and First Guaranty Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Guaranty Bancshares and Lakeland 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 Lakeland Bancorp are associated (or correlated) with First Guaranty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Guaranty Bancshares has no effect on the direction of Lakeland Bancorp i.e., Lakeland Bancorp and First Guaranty go up and down completely randomly.
Pair Corralation between Lakeland Bancorp and First Guaranty
If you would invest (100.00) in Lakeland Bancorp on December 4, 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 |
Lakeland Bancorp vs. First Guaranty Bancshares
Performance |
Timeline |
Lakeland Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
First Guaranty Bancshares |
Lakeland Bancorp and First Guaranty Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lakeland Bancorp and First Guaranty
The main advantage of trading using opposite Lakeland Bancorp and First Guaranty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Bancorp position performs unexpectedly, First Guaranty 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 First Guaranty will offset losses from the drop in First Guaranty's long position.Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland Bancorp vs. LINKBANCORP |
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Check out your portfolio center.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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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