Correlation Between BOK Financial and Triumph Financial
Can any of the company-specific risk be diversified away by investing in both BOK Financial and Triumph 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 BOK Financial and Triumph Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOK Financial and Triumph Financial, you can compare the effects of market volatilities on BOK Financial and Triumph 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 BOK Financial with a short position of Triumph Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOK Financial and Triumph Financial.
Diversification Opportunities for BOK Financial and Triumph Financial
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BOK and Triumph is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BOK Financial and Triumph Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Financial 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 Triumph Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Financial has no effect on the direction of BOK Financial i.e., BOK Financial and Triumph Financial go up and down completely randomly.
Pair Corralation between BOK Financial and Triumph Financial
Given the investment horizon of 90 days BOK Financial is expected to generate 0.66 times more return on investment than Triumph Financial. However, BOK Financial is 1.52 times less risky than Triumph Financial. It trades about 0.15 of its potential returns per unit of risk. Triumph Financial is currently generating about -0.03 per unit of risk. If you would invest 10,889 in BOK Financial on October 22, 2024 and sell it today you would earn a total of 410.00 from holding BOK Financial or generate 3.77% 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. Triumph Financial
Performance |
| Timeline |
| BOK Financial |
| Triumph Financial |
BOK Financial and Triumph Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOK Financial and Triumph Financial
The main advantage of trading using opposite BOK Financial and Triumph Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOK Financial position performs unexpectedly, Triumph 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 Triumph Financial will offset losses from the drop in Triumph Financial'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 |
| Triumph Financial vs. First Capital | Triumph Financial vs. Finward Bancorp | Triumph Financial vs. Community West Bancshares | Triumph Financial vs. QCR Holdings |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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