Correlation Between Foreign Trade and Oconee Federal
Can any of the company-specific risk be diversified away by investing in both Foreign Trade and Oconee Federal 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 Foreign Trade and Oconee Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Foreign Trade Bank and Oconee Federal Financial, you can compare the effects of market volatilities on Foreign Trade and Oconee Federal 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 Foreign Trade with a short position of Oconee Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Foreign Trade and Oconee Federal.
Diversification Opportunities for Foreign Trade and Oconee Federal
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Foreign and Oconee is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Foreign Trade Bank and Oconee Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oconee Federal Financial and Foreign Trade 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 Foreign Trade Bank are associated (or correlated) with Oconee Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oconee Federal Financial has no effect on the direction of Foreign Trade i.e., Foreign Trade and Oconee Federal go up and down completely randomly.
Pair Corralation between Foreign Trade and Oconee Federal
Considering the 90-day investment horizon Foreign Trade Bank is expected to generate 0.52 times more return on investment than Oconee Federal. However, Foreign Trade Bank is 1.91 times less risky than Oconee Federal. It trades about 0.1 of its potential returns per unit of risk. Oconee Federal Financial is currently generating about -0.05 per unit of risk. If you would invest 1,904 in Foreign Trade Bank on August 31, 2024 and sell it today you would earn a total of 1,503 from holding Foreign Trade Bank or generate 78.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 8.56% |
| Values | Daily Returns |
Foreign Trade Bank vs. Oconee Federal Financial
Performance |
| Timeline |
| Foreign Trade Bank |
| Oconee Federal Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Foreign Trade and Oconee Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Foreign Trade and Oconee Federal
The main advantage of trading using opposite Foreign Trade and Oconee Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foreign Trade position performs unexpectedly, Oconee Federal 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 Oconee Federal will offset losses from the drop in Oconee Federal's long position.| Foreign Trade vs. Banco Santander Chile | Foreign Trade vs. Bancolombia SA ADR | Foreign Trade vs. Banco Bradesco SA | Foreign Trade vs. Credicorp |
| Oconee Federal vs. Home Federal Bancorp | Oconee Federal vs. Community West Bancshares | Oconee Federal vs. Magyar Bancorp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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