Correlation Between Bank Of Georgia and Primis Financial
Can any of the company-specific risk be diversified away by investing in both Bank Of Georgia and Primis 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 Bank Of Georgia and Primis Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Of Georgia and Primis Financial Corp, you can compare the effects of market volatilities on Bank Of Georgia and Primis 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 Bank Of Georgia with a short position of Primis Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Of Georgia and Primis Financial.
Diversification Opportunities for Bank Of Georgia and Primis Financial
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bank and Primis is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bank Of Georgia and Primis Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primis Financial Corp and Bank Of Georgia 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 Bank Of Georgia are associated (or correlated) with Primis Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primis Financial Corp has no effect on the direction of Bank Of Georgia i.e., Bank Of Georgia and Primis Financial go up and down completely randomly.
Pair Corralation between Bank Of Georgia and Primis Financial
If you would invest 1,143 in Primis Financial Corp on August 31, 2024 and sell it today you would earn a total of 107.00 from holding Primis Financial Corp or generate 9.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bank Of Georgia vs. Primis Financial Corp
Performance |
| Timeline |
| Bank Of Georgia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Primis Financial Corp |
Bank Of Georgia and Primis Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Of Georgia and Primis Financial
The main advantage of trading using opposite Bank Of Georgia and Primis Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Of Georgia position performs unexpectedly, Primis 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 Primis Financial will offset losses from the drop in Primis Financial's long position.| Bank Of Georgia vs. Andover Bancorp | Bank Of Georgia vs. Aozora Bank Ltd | Bank Of Georgia vs. Absa Group Limited |
| Primis Financial vs. Affinity Bancshares | Primis Financial vs. Home Federal Bancorp | Primis Financial vs. Community West Bancshares | Primis Financial vs. Investar Holding Corp |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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