Correlation Between Great Southern and Bank of South
Can any of the company-specific risk be diversified away by investing in both Great Southern and Bank of South 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 Bank of South 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 Bank of South, you can compare the effects of market volatilities on Great Southern and Bank of South 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 Bank of South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Southern and Bank of South.
Diversification Opportunities for Great Southern and Bank of South
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Great and Bank is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Great Southern Bancorp and Bank of South in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of South 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 Bank of South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of South has no effect on the direction of Great Southern i.e., Great Southern and Bank of South go up and down completely randomly.
Pair Corralation between Great Southern and Bank of South
If you would invest 5,836 in Great Southern Bancorp on August 28, 2024 and sell it today you would earn a total of 568.00 from holding Great Southern Bancorp or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Great Southern Bancorp vs. Bank of South
Performance |
| Timeline |
| Great Southern Bancorp |
| Bank of South |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Great Southern and Bank of South Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Southern and Bank of South
The main advantage of trading using opposite Great Southern and Bank of South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Southern position performs unexpectedly, Bank of South 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 Bank of South will offset losses from the drop in Bank of South'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 |
| Bank of South vs. Auburn National Bancorporation | Bank of South vs. Bank of Marin | Bank of South vs. Ames National | Bank of South vs. CF Financial |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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