Correlation Between Oregon Bancorp and Savi Financial

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

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

Diversification Opportunities for Oregon Bancorp and Savi Financial

-0.75

Correlation Coefficient

Oregon Bancorp  Savi Financial

Pay attention - limited upside

The 3 months correlation between Oregon and Savi is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Oregon Bancorp and Savi Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savi Financial and Oregon 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 Oregon Bancorp are associated (or correlated) with Savi Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savi Financial has no effect on the direction of Oregon Bancorp i.e., Oregon Bancorp and Savi Financial go up and down completely randomly.

Pair Corralation between Oregon Bancorp and Savi Financial

Given the investment horizon of 90 days Oregon Bancorp is expected to under-perform the Savi Financial. In addition to that, Oregon Bancorp is 6.62 times more volatile than Savi Financial. It trades about -0.22 of its total potential returns per unit of risk. Savi Financial is currently generating about 0.08 per unit of volatility. If you would invest  1,510  in Savi Financial on December 18, 2024 and sell it today you would earn a total of  13.00  from holding Savi Financial or generate 0.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.22%
Values	Daily Returns

Oregon Bancorp  vs.  Savi Financial

Oregon Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oregon Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental drivers remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Savi Financial

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Savi Financial are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Savi Financial is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oregon Bancorp and Savi Financial

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

The idea behind Oregon Bancorp and Savi Financial 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.