Correlation Between Great Southern and Banco De
Can any of the company-specific risk be diversified away by investing in both Great Southern and Banco De 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 Banco De 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 Banco De Chile, you can compare the effects of market volatilities on Great Southern and Banco De 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 Banco De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Southern and Banco De.
Diversification Opportunities for Great Southern and Banco De
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Great and Banco is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Great Southern Bancorp and Banco De Chile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco De Chile 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 Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco De Chile has no effect on the direction of Great Southern i.e., Great Southern and Banco De go up and down completely randomly.
Pair Corralation between Great Southern and Banco De
Given the investment horizon of 90 days Great Southern Bancorp is expected to generate 2.36 times more return on investment than Banco De. However, Great Southern is 2.36 times more volatile than Banco De Chile. It trades about 0.13 of its potential returns per unit of risk. Banco De Chile is currently generating about -0.1 per unit of risk. If you would invest 5,740 in Great Southern Bancorp on September 12, 2024 and sell it today you would earn a total of 811.00 from holding Great Southern Bancorp or generate 14.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Southern Bancorp vs. Banco De Chile
Performance |
| Timeline |
| Great Southern Bancorp |
| Banco De Chile |
Great Southern and Banco De Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Southern and Banco De
The main advantage of trading using opposite Great Southern and Banco De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Southern position performs unexpectedly, Banco De 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 Banco De will offset losses from the drop in Banco De'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 |
| Banco De vs. Banco Santander Brasil | Banco De vs. CrossFirst Bankshares | Banco De vs. Banco Bradesco SA | Banco De vs. CF Bankshares |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |