Correlation Between HarborOne Bancorp and Kearny Financial
Can any of the company-specific risk be diversified away by investing in both HarborOne Bancorp and Kearny 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 HarborOne Bancorp and Kearny Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HarborOne Bancorp and Kearny Financial Corp, you can compare the effects of market volatilities on HarborOne Bancorp and Kearny 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 HarborOne Bancorp with a short position of Kearny Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HarborOne Bancorp and Kearny Financial.
Diversification Opportunities for HarborOne Bancorp and Kearny Financial
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HarborOne and Kearny is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HarborOne Bancorp and Kearny Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kearny Financial Corp and HarborOne 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 HarborOne Bancorp are associated (or correlated) with Kearny Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kearny Financial Corp has no effect on the direction of HarborOne Bancorp i.e., HarborOne Bancorp and Kearny Financial go up and down completely randomly.
Pair Corralation between HarborOne Bancorp and Kearny Financial
Given the investment horizon of 90 days HarborOne Bancorp is expected to generate 0.65 times more return on investment than Kearny Financial. However, HarborOne Bancorp is 1.53 times less risky than Kearny Financial. It trades about 0.2 of its potential returns per unit of risk. Kearny Financial Corp is currently generating about -0.07 per unit of risk. If you would invest 975.00 in HarborOne Bancorp on February 7, 2024 and sell it today you would earn a total of 85.00 from holding HarborOne Bancorp or generate 8.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
HarborOne Bancorp vs. Kearny Financial Corp
Performance |
Timeline |
HarborOne Bancorp |
Kearny Financial Corp |
HarborOne Bancorp and Kearny Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with HarborOne Bancorp and Kearny Financial
The main advantage of trading using opposite HarborOne Bancorp and Kearny Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HarborOne Bancorp position performs unexpectedly, Kearny 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 Kearny Financial will offset losses from the drop in Kearny Financial's long position.HarborOne Bancorp vs. Northfield Bancorp | HarborOne Bancorp vs. FNB Inc | HarborOne Bancorp vs. Mifflinburg Bancorp | HarborOne Bancorp vs. Commercial National Financial |
Kearny Financial vs. Home Federal Bancorp | Kearny Financial vs. Community West Bancshares | Kearny Financial vs. Cullman Bancorp | Kearny Financial vs. First Financial Northwest |
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 the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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