Correlation Between Burke Herbert and Old Second
Can any of the company-specific risk be diversified away by investing in both Burke Herbert and Old Second 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 Burke Herbert and Old Second into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burke Herbert Financial and Old Second Bancorp, you can compare the effects of market volatilities on Burke Herbert and Old Second 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 Burke Herbert with a short position of Old Second. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burke Herbert and Old Second.
Diversification Opportunities for Burke Herbert and Old Second
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Burke and Old is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Burke Herbert Financial and Old Second Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Second Bancorp and Burke Herbert 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 Burke Herbert Financial are associated (or correlated) with Old Second. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Second Bancorp has no effect on the direction of Burke Herbert i.e., Burke Herbert and Old Second go up and down completely randomly.
Pair Corralation between Burke Herbert and Old Second
Given the investment horizon of 90 days Burke Herbert is expected to generate 1.53 times less return on investment than Old Second. In addition to that, Burke Herbert is 1.01 times more volatile than Old Second Bancorp. It trades about 0.04 of its total potential returns per unit of risk. Old Second Bancorp is currently generating about 0.06 per unit of volatility. If you would invest 1,754 in Old Second Bancorp on August 17, 2025 and sell it today you would earn a total of 90.00 from holding Old Second Bancorp or generate 5.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burke Herbert Financial vs. Old Second Bancorp
Performance |
| Timeline |
| Burke Herbert Financial |
| Old Second Bancorp |
Burke Herbert and Old Second Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burke Herbert and Old Second
The main advantage of trading using opposite Burke Herbert and Old Second positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burke Herbert position performs unexpectedly, Old Second 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 Old Second will offset losses from the drop in Old Second's long position.| Burke Herbert vs. Tompkins Financial | Burke Herbert vs. First Mid Illinois | Burke Herbert vs. Amalgamated Bank | Burke Herbert vs. FirstSun Capital Bancorp |
| Old Second vs. Tompkins Financial | Old Second vs. FirstSun Capital Bancorp | Old Second vs. Texas Capital Bancshares | Old Second vs. Peoples Bancorp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |