Correlation Between LINKBANCORP and Jonestown Bank

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

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

Diversification Opportunities for LINKBANCORP and Jonestown Bank

0.0

Correlation Coefficient

LINKBANCORP  Jonestown Bank

Pay attention - limited upside

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

Pair Corralation between LINKBANCORP and Jonestown Bank

If you would invest (100.00) in Jonestown Bank and on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Jonestown Bank and 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

LINKBANCORP  vs.  Jonestown Bank and

LINKBANCORP

Risk-Adjusted Performance

Very Weak

Over the last 90 days LINKBANCORP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward-looking signals remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Jonestown Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jonestown Bank and has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Jonestown Bank is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with LINKBANCORP and Jonestown Bank

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

The idea behind LINKBANCORP and Jonestown Bank and 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.