Correlation Between Bank of San Francisco and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both Bank of San Francisco and Greenville 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 Bank of San Francisco and Greenville Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of San and Greenville Federal Financial, you can compare the effects of market volatilities on Bank of San Francisco and Greenville 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 Bank of San Francisco with a short position of Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of San Francisco and Greenville Federal.
Diversification Opportunities for Bank of San Francisco and Greenville Federal
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Greenville is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bank of San and Greenville Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenville Federal and Bank of San Francisco 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 San are associated (or correlated) with Greenville Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenville Federal has no effect on the direction of Bank of San Francisco i.e., Bank of San Francisco and Greenville Federal go up and down completely randomly.
Pair Corralation between Bank of San Francisco and Greenville Federal
Given the investment horizon of 90 days Bank of San Francisco is expected to generate 1.69 times less return on investment than Greenville Federal. But when comparing it to its historical volatility, Bank of San is 1.94 times less risky than Greenville Federal. It trades about 0.06 of its potential returns per unit of risk. Greenville Federal Financial is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 625.00 in Greenville Federal Financial on September 1, 2024 and sell it today you would earn a total of 75.00 from holding Greenville Federal Financial or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Bank of San vs. Greenville Federal Financial
Performance |
| Timeline |
| Bank of San Francisco |
| Greenville Federal |
Bank of San Francisco and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of San Francisco and Greenville Federal
The main advantage of trading using opposite Bank of San Francisco and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of San Francisco position performs unexpectedly, Greenville 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 Greenville Federal will offset losses from the drop in Greenville Federal's long position.| Bank of San Francisco vs. Pioneer Bankcorp | Bank of San Francisco vs. Liberty Northwest Bancorp | Bank of San Francisco vs. Summit Bancshares | Bank of San Francisco vs. Washington Business Bank |
| Greenville Federal vs. First Bankers Trustshares | Greenville Federal vs. First Ottawa Bancshares | Greenville Federal vs. Coastal Carolina Bancshares | Greenville Federal vs. Citizens Bancorp Investment |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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