Correlation Between Sturgis Bancorp and Killbuck Bancshares

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

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

Diversification Opportunities for Sturgis Bancorp and Killbuck Bancshares

0.0

Correlation Coefficient

Sturgis Bancorp  Killbuck Bancshares

Pay attention - limited upside

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

Pair Corralation between Sturgis Bancorp and Killbuck Bancshares

If you would invest  14,908  in Killbuck Bancshares on December 4, 2024 and sell it today you would lose (2,407) from holding Killbuck Bancshares or give up 16.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sturgis Bancorp  vs.  Killbuck Bancshares

Sturgis Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sturgis Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, Sturgis Bancorp is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Killbuck Bancshares

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Killbuck Bancshares are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Killbuck Bancshares sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sturgis Bancorp and Killbuck Bancshares

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

The idea behind Sturgis Bancorp and Killbuck 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.