Correlation Between Greene County and Oconee Federal
Can any of the company-specific risk be diversified away by investing in both Greene County and Oconee 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 Greene County and Oconee Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greene County Bancorp and Oconee Federal Financial, you can compare the effects of market volatilities on Greene County and Oconee 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 Greene County with a short position of Oconee Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greene County and Oconee Federal.
Diversification Opportunities for Greene County and Oconee Federal
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greene and Oconee is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Greene County Bancorp and Oconee Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oconee Federal Financial and Greene County 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 Greene County Bancorp are associated (or correlated) with Oconee Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oconee Federal Financial has no effect on the direction of Greene County i.e., Greene County and Oconee Federal go up and down completely randomly.
Pair Corralation between Greene County and Oconee Federal
If you would invest 3,195 in Greene County Bancorp on August 25, 2024 and sell it today you would lose (36.00) from holding Greene County Bancorp or give up 1.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Greene County Bancorp vs. Oconee Federal Financial
Performance |
| Timeline |
| Greene County Bancorp |
| Oconee Federal Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greene County and Oconee Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greene County and Oconee Federal
The main advantage of trading using opposite Greene County and Oconee Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greene County position performs unexpectedly, Oconee 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 Oconee Federal will offset losses from the drop in Oconee Federal's long position.| Greene County vs. Community West Bancshares | Greene County vs. First Northwest Bancorp | Greene County vs. Home Federal Bancorp | Greene County vs. First Financial Northwest |
| Oconee Federal vs. Home Federal Bancorp | Oconee Federal vs. Community West Bancshares | Oconee Federal vs. Magyar Bancorp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |