Correlation Between BOK Financial and Ameris Bancorp
Can any of the company-specific risk be diversified away by investing in both BOK Financial and Ameris Bancorp 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 BOK Financial and Ameris Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOK Financial and Ameris Bancorp, you can compare the effects of market volatilities on BOK Financial and Ameris Bancorp 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 BOK Financial with a short position of Ameris Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOK Financial and Ameris Bancorp.
Diversification Opportunities for BOK Financial and Ameris Bancorp
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BOK and Ameris is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding BOK Financial and Ameris Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameris Bancorp and BOK 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 BOK Financial are associated (or correlated) with Ameris Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameris Bancorp has no effect on the direction of BOK Financial i.e., BOK Financial and Ameris Bancorp go up and down completely randomly.
Pair Corralation between BOK Financial and Ameris Bancorp
Given the investment horizon of 90 days BOK Financial is expected to under-perform the Ameris Bancorp. But the stock apears to be less risky and, when comparing its historical volatility, BOK Financial is 1.1 times less risky than Ameris Bancorp. The stock trades about -0.05 of its potential returns per unit of risk. The Ameris Bancorp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 6,483 in Ameris Bancorp on November 18, 2024 and sell it today you would earn a total of 136.00 from holding Ameris Bancorp or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOK Financial vs. Ameris Bancorp
Performance |
| Timeline |
| BOK Financial |
| Ameris Bancorp |
BOK Financial and Ameris Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOK Financial and Ameris Bancorp
The main advantage of trading using opposite BOK Financial and Ameris Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOK Financial position performs unexpectedly, Ameris Bancorp 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 Ameris Bancorp will offset losses from the drop in Ameris Bancorp's long position.| BOK Financial vs. First Financial Bankshares | BOK Financial vs. Auburn National Bancorporation | BOK Financial vs. Great Southern Bancorp | BOK Financial vs. First Guaranty Bancshares |
| Ameris Bancorp vs. Kearny Financial Corp | Ameris Bancorp vs. Bankwell Financial Group | Ameris Bancorp vs. Business First Bancshares | Ameris Bancorp vs. Home Federal 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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