Correlation Between Great Southern and Auburn National
Can any of the company-specific risk be diversified away by investing in both Great Southern and Auburn National 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 Great Southern and Auburn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Southern Bancorp and Auburn National Bancorporation, you can compare the effects of market volatilities on Great Southern and Auburn National 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 Great Southern with a short position of Auburn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Southern and Auburn National.
Diversification Opportunities for Great Southern and Auburn National
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Great and Auburn is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Great Southern Bancorp and Auburn National Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auburn National Banc and Great Southern 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 Great Southern Bancorp are associated (or correlated) with Auburn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auburn National Banc has no effect on the direction of Great Southern i.e., Great Southern and Auburn National go up and down completely randomly.
Pair Corralation between Great Southern and Auburn National
Given the investment horizon of 90 days Great Southern Bancorp is expected to generate 0.9 times more return on investment than Auburn National. However, Great Southern Bancorp is 1.11 times less risky than Auburn National. It trades about 0.03 of its potential returns per unit of risk. Auburn National Bancorporation is currently generating about 0.02 per unit of risk. If you would invest 5,328 in Great Southern Bancorp on November 9, 2024 and sell it today you would earn a total of 738.00 from holding Great Southern Bancorp or generate 13.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.25% |
| Values | Daily Returns |
Great Southern Bancorp vs. Auburn National Bancorp.
Performance |
| Timeline |
| Great Southern Bancorp |
| Auburn National Banc |
Great Southern and Auburn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Southern and Auburn National
The main advantage of trading using opposite Great Southern and Auburn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Southern position performs unexpectedly, Auburn National 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 Auburn National will offset losses from the drop in Auburn National's long position.| Great Southern vs. First Northwest Bancorp | Great Southern vs. Community West Bancshares | Great Southern vs. First Financial Northwest | Great Southern vs. First Capital |
| Auburn National vs. Home Federal Bancorp | Auburn National vs. LINKBANCORP | Auburn National vs. Affinity Bancshares | Auburn National vs. Southern California 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 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
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |