Correlation Between Allegiance Banc and Bar Harbor

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Allegiance Banc and Bar Harbor 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 Allegiance Banc and Bar Harbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegiance Banc CS and Bar Harbor Bankshares, you can compare the effects of market volatilities on Allegiance Banc and Bar Harbor 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 Allegiance Banc with a short position of Bar Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegiance Banc and Bar Harbor.

Diversification Opportunities for Allegiance Banc and Bar Harbor

0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Allegiance and Bar Harbor is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allegiance Banc CS and Bar Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bar Harbor Bankshares and Allegiance Banc 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 Allegiance Banc CS are associated (or correlated) with Bar Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bar Harbor Bankshares has no effect on the direction of Allegiance Banc i.e., Allegiance Banc and Bar Harbor go up and down completely randomly.

Pair Corralation between Allegiance Banc and Bar Harbor

Given the investment horizon of 90 days Allegiance Banc CS is expected to under-perform the Bar Harbor. But the stock apears to be less risky and, when comparing its historical volatility, Allegiance Banc CS is 1.29 times less risky than Bar Harbor. The stock trades about -0.02 of its potential returns per unit of risk. The Bar Harbor Bankshares is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,725  in Bar Harbor Bankshares on July 9, 2022 and sell it today you would lose (3.00)  from holding Bar Harbor Bankshares or give up 0.11% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy95.65%
ValuesDaily Returns

Allegiance Banc CS  vs.  Bar Harbor Bankshares

 Performance (%) 
       Timeline  
Allegiance Banc CS 
Allegiance Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Allegiance Banc CS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Allegiance Banc may actually be approaching a critical reversion point that can send shares even higher in November 2022.

Allegiance Price Channel

Bar Harbor Bankshares 
Bar Harbor Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bar Harbor Bankshares are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical indicators, Bar Harbor is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Bar Harbor Price Channel

Allegiance Banc and Bar Harbor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Allegiance Banc and Bar Harbor

The main advantage of trading using opposite Allegiance Banc and Bar Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegiance Banc position performs unexpectedly, Bar Harbor 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 Bar Harbor will offset losses from the drop in Bar Harbor's long position.
Allegiance Banc vs. Amazon Inc
The idea behind Allegiance Banc CS and Bar Harbor Bankshares 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.
Bar Harbor vs. Amazon Inc
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 Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.

Other Complementary Tools

Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go