Correlation Between Lyons Bancorp and United Bancorporation
Can any of the company-specific risk be diversified away by investing in both Lyons Bancorp and United Bancorporation 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 Lyons Bancorp and United Bancorporation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyons Bancorp and United Bancorporation of, you can compare the effects of market volatilities on Lyons Bancorp and United Bancorporation 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 Lyons Bancorp with a short position of United Bancorporation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyons Bancorp and United Bancorporation.
Diversification Opportunities for Lyons Bancorp and United Bancorporation
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lyons and United is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Lyons Bancorp and United Bancorp. of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Bancorporation and Lyons 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 Lyons Bancorp are associated (or correlated) with United Bancorporation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Bancorporation has no effect on the direction of Lyons Bancorp i.e., Lyons Bancorp and United Bancorporation go up and down completely randomly.
Pair Corralation between Lyons Bancorp and United Bancorporation
Given the investment horizon of 90 days Lyons Bancorp is expected to under-perform the United Bancorporation. In addition to that, Lyons Bancorp is 1.11 times more volatile than United Bancorporation of. It trades about -0.04 of its total potential returns per unit of risk. United Bancorporation of is currently generating about 0.06 per unit of volatility. If you would invest 3,763 in United Bancorporation of on December 2, 2024 and sell it today you would earn a total of 1,787 from holding United Bancorporation of or generate 47.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 52.24% |
Values | Daily Returns |
Lyons Bancorp vs. United Bancorp. of
Performance |
Timeline |
Lyons Bancorp |
United Bancorporation |
Lyons Bancorp and United Bancorporation Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lyons Bancorp and United Bancorporation
The main advantage of trading using opposite Lyons Bancorp and United Bancorporation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyons Bancorp position performs unexpectedly, United Bancorporation 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 United Bancorporation will offset losses from the drop in United Bancorporation's long position.Lyons Bancorp vs. FS Bancorp | Lyons Bancorp vs. Eastern Michigan Financial | Lyons Bancorp vs. Grand River Commerce | Lyons Bancorp vs. Bank of Botetourt |
United Bancorporation vs. MF Bancorp | United Bancorporation vs. Merchants Marine Bancorp | United Bancorporation vs. MNB Holdings Corp | United Bancorporation vs. Security Federal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |