Correlation Between Tiptree and NB Bancorp,
Can any of the company-specific risk be diversified away by investing in both Tiptree and NB Bancorp, 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 Tiptree and NB Bancorp, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiptree and NB Bancorp, Common, you can compare the effects of market volatilities on Tiptree and NB Bancorp, 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 Tiptree with a short position of NB Bancorp,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiptree and NB Bancorp,.
Diversification Opportunities for Tiptree and NB Bancorp,
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tiptree and NBBK is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tiptree and NB Bancorp, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NB Bancorp, Common and Tiptree 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 Tiptree are associated (or correlated) with NB Bancorp,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NB Bancorp, Common has no effect on the direction of Tiptree i.e., Tiptree and NB Bancorp, go up and down completely randomly.
Pair Corralation between Tiptree and NB Bancorp,
Given the investment horizon of 90 days Tiptree is expected to under-perform the NB Bancorp,. In addition to that, Tiptree is 2.03 times more volatile than NB Bancorp, Common. It trades about -0.08 of its total potential returns per unit of risk. NB Bancorp, Common is currently generating about 0.0 per unit of volatility. If you would invest 1,849 in NB Bancorp, Common on August 13, 2025 and sell it today you would lose (17.00) from holding NB Bancorp, Common or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiptree vs. NB Bancorp, Common
Performance |
| Timeline |
| Tiptree |
| NB Bancorp, Common |
Tiptree and NB Bancorp, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiptree and NB Bancorp,
The main advantage of trading using opposite Tiptree and NB Bancorp, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiptree position performs unexpectedly, NB Bancorp, 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 NB Bancorp, will offset losses from the drop in NB Bancorp,'s long position.| Tiptree vs. AMERISAFE | Tiptree vs. Employers Holdings | Tiptree vs. Metropolitan Bank Holding | Tiptree vs. Horizon Bancorp |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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