Correlation Between First Bancshares, and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both First Bancshares, 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 First Bancshares, and Greenville Federal 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 Greenville Federal Financial, you can compare the effects of market volatilities on First Bancshares, 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 First Bancshares, with a short position of Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Bancshares, and Greenville Federal.
Diversification Opportunities for First Bancshares, and Greenville Federal
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between First and Greenville is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding The First 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 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 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 First Bancshares, i.e., First Bancshares, and Greenville Federal go up and down completely randomly.
Pair Corralation between First Bancshares, and Greenville Federal
Given the investment horizon of 90 days The First Bancshares, is expected to generate 0.58 times more return on investment than Greenville Federal. However, The First Bancshares, is 1.72 times less risky than Greenville Federal. It trades about 0.09 of its potential returns per unit of risk. Greenville Federal Financial is currently generating about 0.04 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The First Bancshares, vs. Greenville Federal Financial
Performance |
| Timeline |
| First Bancshares, |
| Greenville Federal |
First Bancshares, and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Bancshares, and Greenville Federal
The main advantage of trading using opposite First Bancshares, and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Bancshares, 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.| First Bancshares, vs. Fifth Third Bancorp | First Bancshares, vs. Zions Bancorporation | First Bancshares, vs. Huntington Bancshares Incorporated | First Bancshares, vs. PNC Financial Services |
| Greenville Federal vs. PSB Holdings | Greenville Federal vs. United Overseas Bank | Greenville Federal 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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