Correlation Between BayCom Corp and Affinity Bancshares
Can any of the company-specific risk be diversified away by investing in both BayCom Corp and Affinity 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 BayCom Corp and Affinity Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BayCom Corp and Affinity Bancshares, you can compare the effects of market volatilities on BayCom Corp and Affinity 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 BayCom Corp with a short position of Affinity Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of BayCom Corp and Affinity Bancshares.
Diversification Opportunities for BayCom Corp and Affinity Bancshares
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BayCom and Affinity is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding BayCom Corp and Affinity Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affinity Bancshares and BayCom Corp 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 BayCom Corp are associated (or correlated) with Affinity Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affinity Bancshares has no effect on the direction of BayCom Corp i.e., BayCom Corp and Affinity Bancshares go up and down completely randomly.
Pair Corralation between BayCom Corp and Affinity Bancshares
Given the investment horizon of 90 days BayCom Corp is expected to generate 2.17 times more return on investment than Affinity Bancshares. However, BayCom Corp is 2.17 times more volatile than Affinity Bancshares. It trades about 0.07 of its potential returns per unit of risk. Affinity Bancshares is currently generating about 0.04 per unit of risk. If you would invest 2,577 in BayCom Corp on April 25, 2025 and sell it today you would earn a total of 156.00 from holding BayCom Corp or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BayCom Corp vs. Affinity Bancshares
Performance |
| Timeline |
| BayCom Corp |
| Affinity Bancshares |
BayCom Corp and Affinity Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BayCom Corp and Affinity Bancshares
The main advantage of trading using opposite BayCom Corp and Affinity Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BayCom Corp position performs unexpectedly, Affinity 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 Affinity Bancshares will offset losses from the drop in Affinity Bancshares' long position.| BayCom Corp vs. Affinity Bancshares | BayCom Corp vs. Northeast Community Bancorp | BayCom Corp vs. Bayfirst Financial Corp | BayCom Corp vs. Southern California Bancorp |
| Affinity Bancshares vs. Home Federal Bancorp | Affinity Bancshares vs. LINKBANCORP | Affinity Bancshares vs. Bogota Financial Corp | Affinity Bancshares vs. Richmond Mutual Bancorporation |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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