Correlation Between Exchange Bankshares and Savi Financial
Can any of the company-specific risk be diversified away by investing in both Exchange Bankshares and Savi 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 Exchange Bankshares and Savi Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exchange Bankshares and Savi Financial, you can compare the effects of market volatilities on Exchange Bankshares and Savi 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 Exchange Bankshares with a short position of Savi Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Bankshares and Savi Financial.
Diversification Opportunities for Exchange Bankshares and Savi Financial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Exchange and Savi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Bankshares and Savi Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savi Financial and Exchange Bankshares 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 Exchange Bankshares are associated (or correlated) with Savi Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savi Financial has no effect on the direction of Exchange Bankshares i.e., Exchange Bankshares and Savi Financial go up and down completely randomly.
Pair Corralation between Exchange Bankshares and Savi Financial
If you would invest 1,515 in Savi Financial on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Savi Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exchange Bankshares vs. Savi Financial
Performance |
| Timeline |
| Exchange Bankshares |
| Savi Financial |
Exchange Bankshares and Savi Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exchange Bankshares and Savi Financial
The main advantage of trading using opposite Exchange Bankshares and Savi Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Bankshares position performs unexpectedly, Savi 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 Savi Financial will offset losses from the drop in Savi Financial's long position.| Exchange Bankshares vs. First Community Financial | Exchange Bankshares vs. National Capital Bank | Exchange Bankshares vs. Oakworth Capital | Exchange Bankshares vs. Truxton |
| Savi Financial vs. Summit Bank Group | Savi Financial vs. Pacific West Bancorp | Savi Financial vs. Commencement Bancorp | Savi Financial vs. MNB Holdings 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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