Correlation Between Wayne Savings and Pioneer Bancorp

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

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

Diversification Opportunities for Wayne Savings and Pioneer Bancorp

-0.15

Correlation Coefficient

Wayne Savings  Pioneer Bancorp

Good diversification

The 3 months correlation between Wayne and Pioneer is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Wayne Savings Bancshares and Pioneer Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Bancorp and Wayne Savings 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 Wayne Savings Bancshares are associated (or correlated) with Pioneer Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Bancorp has no effect on the direction of Wayne Savings i.e., Wayne Savings and Pioneer Bancorp go up and down completely randomly.

Pair Corralation between Wayne Savings and Pioneer Bancorp

If you would invest  921.00  in Pioneer Bancorp on October 22, 2024 and sell it today you would earn a total of  192.00  from holding Pioneer Bancorp or generate 20.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	0.44%
Values	Daily Returns

Wayne Savings Bancshares  vs.  Pioneer Bancorp

Wayne Savings Bancshares

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wayne Savings Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Wayne Savings is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pioneer Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pioneer Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Pioneer Bancorp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Wayne Savings and Pioneer Bancorp

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

The idea behind Wayne Savings Bancshares and Pioneer Bancorp 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.