Correlation Between BOK Financial and Home Federal
Can any of the company-specific risk be diversified away by investing in both BOK Financial and Home 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 BOK Financial and Home Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOK Financial and Home Federal Bancorp, you can compare the effects of market volatilities on BOK Financial and Home 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 BOK Financial with a short position of Home Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOK Financial and Home Federal.
Diversification Opportunities for BOK Financial and Home Federal
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between BOK and Home is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding BOK Financial and Home Federal Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Federal 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 Home Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Federal Bancorp has no effect on the direction of BOK Financial i.e., BOK Financial and Home Federal go up and down completely randomly.
Pair Corralation between BOK Financial and Home Federal
Given the investment horizon of 90 days BOK Financial is expected to generate 1.14 times more return on investment than Home Federal. However, BOK Financial is 1.14 times more volatile than Home Federal Bancorp. It trades about 0.17 of its potential returns per unit of risk. Home Federal Bancorp is currently generating about -0.03 per unit of risk. If you would invest 10,780 in BOK Financial on August 29, 2024 and sell it today you would earn a total of 1,145 from holding BOK Financial or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
BOK Financial vs. Home Federal Bancorp
Performance |
| Timeline |
| BOK Financial |
| Home Federal Bancorp |
BOK Financial and Home Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOK Financial and Home Federal
The main advantage of trading using opposite BOK Financial and Home Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOK Financial position performs unexpectedly, Home 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 Home Federal will offset losses from the drop in Home Federal'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 |
| Home Federal vs. Fifth Third Bancorp | Home Federal vs. Huntington Bancshares Incorporated | Home Federal vs. MT Bank |
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 CEOs Directory module to screen CEOs from public companies around the world.
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