Correlation Between Cullman Bancorp and Southern States
Can any of the company-specific risk be diversified away by investing in both Cullman Bancorp and Southern States 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 Cullman Bancorp and Southern States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullman Bancorp and Southern States Bancshares, you can compare the effects of market volatilities on Cullman Bancorp and Southern States 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 Cullman Bancorp with a short position of Southern States. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullman Bancorp and Southern States.
Diversification Opportunities for Cullman Bancorp and Southern States
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cullman and Southern is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cullman Bancorp and Southern States Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern States Banc and Cullman Bancorp 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 Cullman Bancorp are associated (or correlated) with Southern States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern States Banc has no effect on the direction of Cullman Bancorp i.e., Cullman Bancorp and Southern States go up and down completely randomly.
Pair Corralation between Cullman Bancorp and Southern States
If you would invest 3,215 in Southern States Bancshares on August 29, 2024 and sell it today you would earn a total of 527.00 from holding Southern States Bancshares or generate 16.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Cullman Bancorp vs. Southern States Bancshares
Performance |
| Timeline |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Southern States Banc |
Cullman Bancorp and Southern States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullman Bancorp and Southern States
The main advantage of trading using opposite Cullman Bancorp and Southern States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullman Bancorp position performs unexpectedly, Southern States 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 Southern States will offset losses from the drop in Southern States' long position.| Cullman Bancorp vs. Home Federal Bancorp | Cullman Bancorp vs. Lake Shore Bancorp | Cullman Bancorp vs. Community West Bancshares | Cullman Bancorp vs. Magyar Bancorp |
| Southern States vs. Home Federal Bancorp | Southern States vs. Oak Valley Bancorp | Southern States vs. Mainstreet Bank | Southern States vs. Chemung Financial Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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