Correlation Between Susquehanna Community and 92346MEW7

Can any of the company-specific risk be diversified away by investing in both Susquehanna Community and 92346MEW7 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 Susquehanna Community and 92346MEW7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Susquehanna Community Financial and US92346MEW73, you can compare the effects of market volatilities on Susquehanna Community and 92346MEW7 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 Susquehanna Community with a short position of 92346MEW7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susquehanna Community and 92346MEW7.

Diversification Opportunities for Susquehanna Community and 92346MEW7

-0.53

Correlation Coefficient

Susquehanna Community  92346MEW7

Excellent diversification

The 3 months correlation between Susquehanna and 92346MEW7 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Susquehanna Community Financia and US92346MEW73 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US92346MEW73 and Susquehanna Community 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 Susquehanna Community Financial are associated (or correlated) with 92346MEW7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US92346MEW73 has no effect on the direction of Susquehanna Community i.e., Susquehanna Community and 92346MEW7 go up and down completely randomly.

Pair Corralation between Susquehanna Community and 92346MEW7

Given the investment horizon of 90 days Susquehanna Community Financial is expected to generate 1.27 times more return on investment than 92346MEW7. However, Susquehanna Community is 1.27 times more volatile than US92346MEW73. It trades about 0.06 of its potential returns per unit of risk. US92346MEW73 is currently generating about 0.04 per unit of risk. If you would invest  1,049  in Susquehanna Community Financial on March 8, 2025 and sell it today you would earn a total of  375.00  from holding Susquehanna Community Financial or generate 35.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	24.63%
Values	Daily Returns

Susquehanna Community Financia  vs.  US92346MEW73

Susquehanna Community

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Susquehanna Community Financial are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating fundamental indicators, Susquehanna Community reported solid returns over the last few months and may actually be approaching a breakup point.

US92346MEW73

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in US92346MEW73 are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, 92346MEW7 sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Susquehanna Community and 92346MEW7

The main advantage of trading using opposite Susquehanna Community and 92346MEW7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susquehanna Community position performs unexpectedly, 92346MEW7 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 92346MEW7 will offset losses from the drop in 92346MEW7's long position.

The idea behind Susquehanna Community Financial and US92346MEW73 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..