| HTBK Stock | | | USD 10.29 0.06 0.58% |
The current 90-days correlation between Heritage Commerce Corp and Sierra Bancorp is 0.89 (i.e., Very poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Heritage Commerce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Heritage Commerce Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
Heritage Commerce Correlation With Market
Poor diversification
The correlation between Heritage Commerce Corp and DJI is 0.61 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Heritage Commerce Corp and DJI in the same portfolio, assuming nothing else is changed.
Check out
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Heritage Commerce Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in bureau of labor statistics.