Correlation Between Primis Financial and Bank Of Georgia
Can any of the company-specific risk be diversified away by investing in both Primis Financial and Bank Of Georgia 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 Primis Financial and Bank Of Georgia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Primis Financial Corp and Bank Of Georgia, you can compare the effects of market volatilities on Primis Financial and Bank Of Georgia 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 Primis Financial with a short position of Bank Of Georgia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primis Financial and Bank Of Georgia.
Diversification Opportunities for Primis Financial and Bank Of Georgia
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Primis and Bank is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Primis Financial Corp and Bank Of Georgia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Of Georgia and Primis Financial 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 Primis Financial Corp are associated (or correlated) with Bank Of Georgia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Of Georgia has no effect on the direction of Primis Financial i.e., Primis Financial and Bank Of Georgia go up and down completely randomly.
Pair Corralation between Primis Financial and Bank Of Georgia
If you would invest 1,171 in Primis Financial Corp on September 2, 2024 and sell it today you would earn a total of 79.00 from holding Primis Financial Corp or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Primis Financial Corp vs. Bank Of Georgia
Performance |
| Timeline |
| Primis Financial Corp |
| Bank Of Georgia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Primis Financial and Bank Of Georgia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primis Financial and Bank Of Georgia
The main advantage of trading using opposite Primis Financial and Bank Of Georgia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primis Financial position performs unexpectedly, Bank Of Georgia 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 Bank Of Georgia will offset losses from the drop in Bank Of Georgia's long position.| Primis Financial vs. Affinity Bancshares | Primis Financial vs. Auburn National Bancorporation | Primis Financial vs. First Community | Primis Financial vs. LINKBANCORP |
| Bank Of Georgia vs. Andover Bancorp | Bank Of Georgia vs. Aozora Bank Ltd | Bank Of Georgia vs. Absa Group Limited |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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