Correlation Between Glen Burnie and First Reliance
Can any of the company-specific risk be diversified away by investing in both Glen Burnie and First Reliance 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 Glen Burnie and First Reliance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glen Burnie Bancorp and First Reliance Bancshares, you can compare the effects of market volatilities on Glen Burnie and First Reliance 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 Glen Burnie with a short position of First Reliance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Burnie and First Reliance.
Diversification Opportunities for Glen Burnie and First Reliance
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glen and First is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Glen Burnie Bancorp and First Reliance Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Reliance Bancshares and Glen Burnie 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 Glen Burnie Bancorp are associated (or correlated) with First Reliance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Reliance Bancshares has no effect on the direction of Glen Burnie i.e., Glen Burnie and First Reliance go up and down completely randomly.
Pair Corralation between Glen Burnie and First Reliance
Given the investment horizon of 90 days Glen Burnie Bancorp is expected to generate 23.73 times more return on investment than First Reliance. However, Glen Burnie is 23.73 times more volatile than First Reliance Bancshares. It trades about 0.04 of its potential returns per unit of risk. First Reliance Bancshares is currently generating about 0.02 per unit of risk. If you would invest 811.00 in Glen Burnie Bancorp on August 26, 2024 and sell it today you would lose (251.00) from holding Glen Burnie Bancorp or give up 30.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glen Burnie Bancorp vs. First Reliance Bancshares
Performance |
| Timeline |
| Glen Burnie Bancorp |
| First Reliance Bancshares |
Glen Burnie and First Reliance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Burnie and First Reliance
The main advantage of trading using opposite Glen Burnie and First Reliance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Burnie position performs unexpectedly, First Reliance 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 First Reliance will offset losses from the drop in First Reliance's long position.| Glen Burnie vs. First Bankers Trustshares | Glen Burnie vs. Greenville Federal Financial | Glen Burnie vs. First Ottawa Bancshares | Glen Burnie vs. Coastal Carolina Bancshares |
| First Reliance vs. Standard Bank Group | First Reliance vs. PSB Holdings | First Reliance vs. United Overseas Bank | First Reliance 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |