Correlation Between Stellar Bancorp, and German American
Can any of the company-specific risk be diversified away by investing in both Stellar Bancorp, and German American 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 Stellar Bancorp, and German American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stellar Bancorp, and German American Bancorp, you can compare the effects of market volatilities on Stellar Bancorp, and German American 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 Stellar Bancorp, with a short position of German American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stellar Bancorp, and German American.
Diversification Opportunities for Stellar Bancorp, and German American
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stellar and German is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Stellar Bancorp, and German American Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on German American Bancorp and Stellar 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 Stellar Bancorp, are associated (or correlated) with German American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of German American Bancorp has no effect on the direction of Stellar Bancorp, i.e., Stellar Bancorp, and German American go up and down completely randomly.
Pair Corralation between Stellar Bancorp, and German American
Given the investment horizon of 90 days Stellar Bancorp, is expected to generate 1.15 times more return on investment than German American. However, Stellar Bancorp, is 1.15 times more volatile than German American Bancorp. It trades about 0.03 of its potential returns per unit of risk. German American Bancorp is currently generating about -0.04 per unit of risk. If you would invest 3,062 in Stellar Bancorp, on August 25, 2025 and sell it today you would earn a total of 80.00 from holding Stellar Bancorp, or generate 2.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stellar Bancorp, vs. German American Bancorp
Performance |
| Timeline |
| Stellar Bancorp, |
| German American Bancorp |
Stellar Bancorp, and German American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stellar Bancorp, and German American
The main advantage of trading using opposite Stellar Bancorp, and German American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stellar Bancorp, position performs unexpectedly, German American 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 German American will offset losses from the drop in German American's long position.| Stellar Bancorp, vs. Lakeland Financial | Stellar Bancorp, vs. TriCo Bancshares | Stellar Bancorp, vs. German American Bancorp | Stellar Bancorp, vs. First Commonwealth Financial |
| German American vs. Lakeland Financial | German American vs. TriCo Bancshares | German American vs. 1st Source | German American vs. Stellar 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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