Correlation Between Fifth Third and SouthState
Can any of the company-specific risk be diversified away by investing in both Fifth Third and SouthState 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 Fifth Third and SouthState into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fifth Third Bancorp and SouthState, you can compare the effects of market volatilities on Fifth Third and SouthState 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 Fifth Third with a short position of SouthState. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fifth Third and SouthState.
Diversification Opportunities for Fifth Third and SouthState
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fifth and SouthState is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Fifth Third Bancorp and SouthState in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SouthState and Fifth Third 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 Fifth Third Bancorp are associated (or correlated) with SouthState. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SouthState has no effect on the direction of Fifth Third i.e., Fifth Third and SouthState go up and down completely randomly.
Pair Corralation between Fifth Third and SouthState
Given the investment horizon of 90 days Fifth Third Bancorp is expected to generate 0.81 times more return on investment than SouthState. However, Fifth Third Bancorp is 1.23 times less risky than SouthState. It trades about 0.13 of its potential returns per unit of risk. SouthState is currently generating about 0.08 per unit of risk. If you would invest 2,951 in Fifth Third Bancorp on August 29, 2024 and sell it today you would earn a total of 1,874 from holding Fifth Third Bancorp or generate 63.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fifth Third Bancorp vs. SouthState
Performance |
| Timeline |
| Fifth Third Bancorp |
| SouthState |
Fifth Third and SouthState Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fifth Third and SouthState
The main advantage of trading using opposite Fifth Third and SouthState positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fifth Third position performs unexpectedly, SouthState 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 SouthState will offset losses from the drop in SouthState's long position.| Fifth Third vs. Home Federal Bancorp | Fifth Third vs. First Northwest Bancorp | Fifth Third vs. First Financial Northwest | Fifth Third vs. CF Bankshares |
| SouthState vs. Pinnacle Financial Partners | SouthState vs. Southern First Bancshares | SouthState vs. SmartFinancial, | SouthState vs. WSFS Financial |
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.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |