Correlation Between Auburn Natl and Bar Harbor

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

Diversification Opportunities for Auburn Natl and Bar Harbor

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Auburn and Bar Harbor is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Auburn Natl Bncp 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 Auburn Natl 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 Auburn Natl Bncp 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 Auburn Natl i.e., Auburn Natl and Bar Harbor go up and down completely randomly.

Pair Corralation between Auburn Natl and Bar Harbor

Given the investment horizon of 90 days Auburn Natl Bncp is expected to under-perform the Bar Harbor. In addition to that, Auburn Natl is 1.15 times more volatile than Bar Harbor Bankshares. It trades about -0.28 of its total potential returns per unit of risk. Bar Harbor Bankshares is currently generating about -0.08 per unit of volatility. If you would invest  2,825  in Bar Harbor Bankshares on June 28, 2022 and sell it today you would lose (113.00)  from holding Bar Harbor Bankshares or give up 4.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Auburn Natl Bncp  vs.  Bar Harbor Bankshares

 Performance (%) 
       Timeline  
Auburn Natl Bncp 
Auburn Performance
0 of 100
Over the last 90 days Auburn Natl Bncp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in October 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Auburn 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

Auburn Natl and Bar Harbor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Auburn Natl and Bar Harbor

The main advantage of trading using opposite Auburn Natl and Bar Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auburn Natl 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.
Auburn Natl vs. Kibush Capital Corp
The idea behind Auburn Natl Bncp 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. Kibush Capital Corp
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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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