Correlation Between First Bankers and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both First Bankers 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 Bankers and Greenville Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Bankers Trustshares and Greenville Federal Financial, you can compare the effects of market volatilities on First Bankers 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 Bankers with a short position of Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Bankers and Greenville Federal.
Diversification Opportunities for First Bankers and Greenville Federal
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Greenville is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding First Bankers Trustshares 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 Bankers 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 First Bankers Trustshares 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 Bankers i.e., First Bankers and Greenville Federal go up and down completely randomly.
Pair Corralation between First Bankers and Greenville Federal
Given the investment horizon of 90 days First Bankers Trustshares is expected to generate 0.49 times more return on investment than Greenville Federal. However, First Bankers Trustshares is 2.03 times less risky than Greenville Federal. It trades about 0.08 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 1,268 in First Bankers Trustshares on August 25, 2024 and sell it today you would earn a total of 417.00 from holding First Bankers Trustshares or generate 32.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.6% |
| Values | Daily Returns |
First Bankers Trustshares vs. Greenville Federal Financial
Performance |
| Timeline |
| First Bankers Trustshares |
| Greenville Federal |
First Bankers and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Bankers and Greenville Federal
The main advantage of trading using opposite First Bankers and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Bankers 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 Bankers vs. Greenville Federal Financial | First Bankers vs. First Ottawa Bancshares | First Bankers vs. Coastal Carolina Bancshares | First Bankers vs. Citizens Bancorp Investment |
| Greenville Federal vs. Standard Bank Group | 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |