Correlation Between Oregon Bancorp and Infinity Bank

Can any of the company-specific risk be diversified away by investing in both Oregon Bancorp and Infinity Bank 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 Oregon Bancorp and Infinity Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Oregon Bancorp and Infinity Bank, you can compare the effects of market volatilities on Oregon Bancorp and Infinity Bank 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 Oregon Bancorp with a short position of Infinity Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oregon Bancorp and Infinity Bank.

Diversification Opportunities for Oregon Bancorp and Infinity Bank

-0.93

Correlation Coefficient

Oregon Bancorp  Infinity Bank

Pay attention - limited upside

The 3 months correlation between Oregon and Infinity is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Oregon Bancorp and Infinity Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinity Bank and Oregon 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 Oregon Bancorp are associated (or correlated) with Infinity Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinity Bank has no effect on the direction of Oregon Bancorp i.e., Oregon Bancorp and Infinity Bank go up and down completely randomly.

Pair Corralation between Oregon Bancorp and Infinity Bank

Given the investment horizon of 90 days Oregon Bancorp is expected to generate 2.0 times more return on investment than Infinity Bank. However, Oregon Bancorp is 2.0 times more volatile than Infinity Bank. It trades about 0.3 of its potential returns per unit of risk. Infinity Bank is currently generating about -0.19 per unit of risk. If you would invest  1,870  in Oregon Bancorp on September 4, 2025 and sell it today you would earn a total of  586.00  from holding Oregon Bancorp or generate 31.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Oregon Bancorp  vs.  Infinity Bank

Oregon Bancorp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oregon Bancorp are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental drivers, Oregon Bancorp displayed solid returns over the last few months and may actually be approaching a breakup point.

Infinity Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days Infinity Bank has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's technical and fundamental indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Oregon Bancorp and Infinity Bank

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

The idea behind Oregon Bancorp and Infinity Bank 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.