Correlation Between Glen Burnie and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both Glen Burnie 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 Glen Burnie and Greenville Federal 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 Greenville Federal Financial, you can compare the effects of market volatilities on Glen Burnie 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 Glen Burnie with a short position of Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Burnie and Greenville Federal.
Diversification Opportunities for Glen Burnie and Greenville Federal
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glen and Greenville is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Glen Burnie Bancorp and Greenville Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenville Federal 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 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 Glen Burnie i.e., Glen Burnie and Greenville Federal go up and down completely randomly.
Pair Corralation between Glen Burnie and Greenville Federal
Given the investment horizon of 90 days Glen Burnie Bancorp is expected to generate 16.01 times more return on investment than Greenville Federal. However, Glen Burnie is 16.01 times more volatile than Greenville Federal Financial. It trades about 0.04 of its potential returns per unit of risk. Greenville Federal Financial is currently generating about 0.0 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. Greenville Federal Financial
Performance |
| Timeline |
| Glen Burnie Bancorp |
| Greenville Federal |
Glen Burnie and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Burnie and Greenville Federal
The main advantage of trading using opposite Glen Burnie and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Burnie 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.| Glen Burnie vs. First Bankers Trustshares | Glen Burnie vs. Greenville Federal Financial | Glen Burnie vs. First Ottawa Bancshares | Glen Burnie vs. Coastal Carolina Bancshares |
| 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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