Correlation Between Auburn National and Bank of South
Can any of the company-specific risk be diversified away by investing in both Auburn National and Bank of South 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 National and Bank of South into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auburn National Bancorporation and Bank of South, you can compare the effects of market volatilities on Auburn National and Bank of South 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 National with a short position of Bank of South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auburn National and Bank of South.
Diversification Opportunities for Auburn National and Bank of South
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auburn and Bank is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Auburn National Bancorp. and Bank of South in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of South and Auburn National 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 National Bancorporation are associated (or correlated) with Bank of South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of South has no effect on the direction of Auburn National i.e., Auburn National and Bank of South go up and down completely randomly.
Pair Corralation between Auburn National and Bank of South
If you would invest 2,265 in Auburn National Bancorporation on October 26, 2024 and sell it today you would earn a total of 23.00 from holding Auburn National Bancorporation or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.5% |
| Values | Daily Returns |
Auburn National Bancorp. vs. Bank of South
Performance |
| Timeline |
| Auburn National Banc |
| Bank of South |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Auburn National and Bank of South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auburn National and Bank of South
The main advantage of trading using opposite Auburn National and Bank of South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auburn National position performs unexpectedly, Bank of South 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 Bank of South will offset losses from the drop in Bank of South's long position.| Auburn National vs. Home Federal Bancorp | Auburn National vs. LINKBANCORP | Auburn National vs. Affinity Bancshares | Auburn National vs. Southern California Bancorp |
| Bank of South vs. Auburn National Bancorporation | Bank of South vs. Bank of Marin | Bank of South vs. Ames National | Bank of South vs. CF Financial |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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