Correlation Between First Bancshares, and CoastalSouth Bancshares
Can any of the company-specific risk be diversified away by investing in both First Bancshares, and CoastalSouth Bancshares 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 First Bancshares, and CoastalSouth Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The First Bancshares, and CoastalSouth Bancshares, you can compare the effects of market volatilities on First Bancshares, and CoastalSouth Bancshares 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 First Bancshares, with a short position of CoastalSouth Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Bancshares, and CoastalSouth Bancshares.
Diversification Opportunities for First Bancshares, and CoastalSouth Bancshares
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and CoastalSouth is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding The First Bancshares, and CoastalSouth Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoastalSouth Bancshares and First Bancshares, 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 The First Bancshares, are associated (or correlated) with CoastalSouth Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoastalSouth Bancshares has no effect on the direction of First Bancshares, i.e., First Bancshares, and CoastalSouth Bancshares go up and down completely randomly.
Pair Corralation between First Bancshares, and CoastalSouth Bancshares
Given the investment horizon of 90 days The First Bancshares, is expected to generate 0.82 times more return on investment than CoastalSouth Bancshares. However, The First Bancshares, is 1.22 times less risky than CoastalSouth Bancshares. It trades about 0.09 of its potential returns per unit of risk. CoastalSouth Bancshares is currently generating about 0.06 per unit of risk. If you would invest 2,476 in The First Bancshares, on August 26, 2024 and sell it today you would earn a total of 1,289 from holding The First Bancshares, or generate 52.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
The First Bancshares, vs. CoastalSouth Bancshares
Performance |
| Timeline |
| First Bancshares, |
| CoastalSouth Bancshares |
First Bancshares, and CoastalSouth Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Bancshares, and CoastalSouth Bancshares
The main advantage of trading using opposite First Bancshares, and CoastalSouth Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Bancshares, position performs unexpectedly, CoastalSouth Bancshares 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 CoastalSouth Bancshares will offset losses from the drop in CoastalSouth Bancshares' long position.| First Bancshares, vs. Fifth Third Bancorp | First Bancshares, vs. Zions Bancorporation | First Bancshares, vs. Huntington Bancshares Incorporated | First Bancshares, vs. PNC Financial Services |
| CoastalSouth Bancshares vs. PSB Holdings | CoastalSouth Bancshares vs. United Overseas Bank | CoastalSouth Bancshares vs. Turkiye Garanti Bankasi |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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