Correlation Analysis Between Coastal Financial and Luther Burbank

This module allows you to analyze existing cross correlation between Coastal Financial Corporation and Luther Burbank Corporation. You can compare the effects of market volatilities on Coastal Financial and Luther Burbank 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 Coastal Financial with a short position of Luther Burbank. See also your portfolio center. Please also check ongoing floating volatility patterns of Coastal Financial and Luther Burbank.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Coastal Financial  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coastal Financial Corporation are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Coastal Financial sustained solid returns over the last few months and may actually be approaching a breakup point.
Luther Burbank  
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Luther Burbank Corporation are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Luther Burbank is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

Coastal Financial and Luther Burbank Volatility Contrast

 Predicted Return Density 
      Returns 

Coastal Financial Corp.  vs.  Luther Burbank Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Coastal Financial Corporation is expected to generate 1.95 times more return on investment than Luther Burbank. However, Coastal Financial is 1.95 times more volatile than Luther Burbank Corporation. It trades about 0.1 of its potential returns per unit of risk. Luther Burbank Corporation is currently generating about 0.06 per unit of risk. If you would invest  1,470  in Coastal Financial Corporation on November 8, 2019 and sell it today you would earn a total of  221.00  from holding Coastal Financial Corporation or generate 15.03% return on investment over 30 days.

Pair Corralation between Coastal Financial and Luther Burbank

0.75
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy86.67%
ValuesDaily Returns

Diversification Opportunities for Coastal Financial and Luther Burbank

Coastal Financial Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Coastal Financial Corp. and Luther Burbank Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Luther Burbank and Coastal Financial 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 Coastal Financial Corporation are associated (or correlated) with Luther Burbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luther Burbank has no effect on the direction of Coastal Financial i.e. Coastal Financial and Luther Burbank go up and down completely randomly.
See also your portfolio center. Please also try Technical Analysis module to check basic technical indicators and analysis based on most latest market data.


 
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