Correlation Between Axos Financial and Great Southern
Can any of the company-specific risk be diversified away by investing in both Axos Financial 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 Axos Financial and Great Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and Great Southern Bancorp, you can compare the effects of market volatilities on Axos Financial 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 Axos Financial with a short position of Great Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Great Southern.
Diversification Opportunities for Axos Financial and Great Southern
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Axos and Great is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial 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 Axos 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 Axos Financial 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 Axos Financial i.e., Axos Financial and Great Southern go up and down completely randomly.
Pair Corralation between Axos Financial and Great Southern
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 1.34 times more return on investment than Great Southern. However, Axos Financial is 1.34 times more volatile than Great Southern Bancorp. It trades about 0.23 of its potential returns per unit of risk. Great Southern Bancorp is currently generating about 0.11 per unit of risk. If you would invest 6,564 in Axos Financial on August 24, 2024 and sell it today you would earn a total of 1,648 from holding Axos Financial or generate 25.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. Great Southern Bancorp
Performance |
| Timeline |
| Axos Financial |
| Great Southern Bancorp |
Axos Financial and Great Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and Great Southern
The main advantage of trading using opposite Axos Financial and Great Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial 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.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| Great Southern vs. First Northwest Bancorp | Great Southern vs. Community West Bancshares | Great Southern vs. First Financial Northwest | Great Southern vs. First Capital |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |