Correlation Between Auburn National and BOK Financial
Can any of the company-specific risk be diversified away by investing in both Auburn National and BOK Financial 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 BOK Financial 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 BOK Financial, you can compare the effects of market volatilities on Auburn National and BOK Financial 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 BOK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auburn National and BOK Financial.
Diversification Opportunities for Auburn National and BOK Financial
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Auburn and BOK is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Auburn National Bancorp. and BOK Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOK Financial 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 BOK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOK Financial has no effect on the direction of Auburn National i.e., Auburn National and BOK Financial go up and down completely randomly.
Pair Corralation between Auburn National and BOK Financial
Given the investment horizon of 90 days Auburn National is expected to generate 1.32 times less return on investment than BOK Financial. In addition to that, Auburn National is 1.18 times more volatile than BOK Financial. It trades about 0.02 of its total potential returns per unit of risk. BOK Financial is currently generating about 0.03 per unit of volatility. If you would invest 9,729 in BOK Financial on August 28, 2024 and sell it today you would earn a total of 2,238 from holding BOK Financial or generate 23.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.38% |
| Values | Daily Returns |
Auburn National Bancorp. vs. BOK Financial
Performance |
| Timeline |
| Auburn National Banc |
| BOK Financial |
Auburn National and BOK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auburn National and BOK Financial
The main advantage of trading using opposite Auburn National and BOK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auburn National position performs unexpectedly, BOK Financial 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 BOK Financial will offset losses from the drop in BOK Financial's long position.| Auburn National vs. Home Federal Bancorp | Auburn National vs. LINKBANCORP | Auburn National vs. Affinity Bancshares | Auburn National vs. Southern California Bancorp |
| BOK Financial vs. First Financial Bankshares | BOK Financial vs. Auburn National Bancorporation | BOK Financial vs. Great Southern Bancorp | BOK Financial vs. First Guaranty Bancshares |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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