Correlation Between Auburn Bancorp and Great Southern
Can any of the company-specific risk be diversified away by investing in both Auburn Bancorp and Great Southern 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 Auburn Bancorp and Great Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auburn Bancorp and Great Southern Bancorp, you can compare the effects of market volatilities on Auburn Bancorp and Great Southern 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 Auburn Bancorp with a short position of Great Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auburn Bancorp and Great Southern.
Diversification Opportunities for Auburn Bancorp and Great Southern
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Auburn and Great is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Auburn Bancorp and Great Southern Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Southern Bancorp and Auburn 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 Auburn Bancorp are associated (or correlated) with Great Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Southern Bancorp has no effect on the direction of Auburn Bancorp i.e., Auburn Bancorp and Great Southern go up and down completely randomly.
Pair Corralation between Auburn Bancorp and Great Southern
Given the investment horizon of 90 days Auburn Bancorp is expected to under-perform the Great Southern. But the pink sheet apears to be less risky and, when comparing its historical volatility, Auburn Bancorp is 3.33 times less risky than Great Southern. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Great Southern Bancorp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 5,836 in Great Southern Bancorp on August 29, 2024 and sell it today you would earn a total of 487.00 from holding Great Southern Bancorp or generate 8.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auburn Bancorp vs. Great Southern Bancorp
Performance |
| Timeline |
| Auburn Bancorp |
| Great Southern Bancorp |
Auburn Bancorp and Great Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auburn Bancorp and Great Southern
The main advantage of trading using opposite Auburn Bancorp and Great Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auburn Bancorp position performs unexpectedly, Great Southern 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 Great Southern will offset losses from the drop in Great Southern's long position.| Auburn Bancorp vs. Invesco High Income | Auburn Bancorp vs. Blackrock Muniholdings Ny | Auburn Bancorp vs. MFS Investment Grade | Auburn Bancorp vs. Federated Premier Municipal |
| Great Southern vs. Fifth Third Bancorp | Great Southern vs. Huntington Bancshares Incorporated | Great Southern vs. MT Bank |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |