Correlation Between Coastal Carolina and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both Coastal Carolina 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 Coastal Carolina and Greenville Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coastal Carolina Bancshares and Greenville Federal Financial, you can compare the effects of market volatilities on Coastal Carolina 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 Coastal Carolina with a short position of Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coastal Carolina and Greenville Federal.
Diversification Opportunities for Coastal Carolina and Greenville Federal
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Coastal and Greenville is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Coastal Carolina Bancshares and Greenville Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenville Federal and Coastal Carolina 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 Coastal Carolina Bancshares 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 Coastal Carolina i.e., Coastal Carolina and Greenville Federal go up and down completely randomly.
Pair Corralation between Coastal Carolina and Greenville Federal
Given the investment horizon of 90 days Coastal Carolina is expected to generate 1.32 times less return on investment than Greenville Federal. But when comparing it to its historical volatility, Coastal Carolina Bancshares is 4.41 times less risky than Greenville Federal. It trades about 0.07 of its potential returns per unit of risk. Greenville Federal Financial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 660.00 in Greenville Federal Financial on August 29, 2024 and sell it today you would earn a total of 40.00 from holding Greenville Federal Financial or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coastal Carolina Bancshares vs. Greenville Federal Financial
Performance |
| Timeline |
| Coastal Carolina Ban |
| Greenville Federal |
Coastal Carolina and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coastal Carolina and Greenville Federal
The main advantage of trading using opposite Coastal Carolina and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coastal Carolina 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.| Coastal Carolina vs. First Bankers Trustshares | Coastal Carolina vs. Greenville Federal Financial | Coastal Carolina vs. First Ottawa Bancshares | Coastal Carolina vs. Citizens Bancorp Investment |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |