Correlation Between Great Southern and ChoiceOne Financial
Can any of the company-specific risk be diversified away by investing in both Great Southern and ChoiceOne Financial 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 ChoiceOne Financial 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 ChoiceOne Financial Services, you can compare the effects of market volatilities on Great Southern and ChoiceOne Financial 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 ChoiceOne Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Southern and ChoiceOne Financial.
Diversification Opportunities for Great Southern and ChoiceOne Financial
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Great and ChoiceOne is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Great Southern Bancorp and ChoiceOne Financial Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChoiceOne Financial 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 ChoiceOne Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChoiceOne Financial has no effect on the direction of Great Southern i.e., Great Southern and ChoiceOne Financial go up and down completely randomly.
Pair Corralation between Great Southern and ChoiceOne Financial
Given the investment horizon of 90 days Great Southern Bancorp is expected to under-perform the ChoiceOne Financial. But the stock apears to be less risky and, when comparing its historical volatility, Great Southern Bancorp is 1.34 times less risky than ChoiceOne Financial. The stock trades about -0.04 of its potential returns per unit of risk. The ChoiceOne Financial Services is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,427 in ChoiceOne Financial Services on October 20, 2024 and sell it today you would earn a total of 42.00 from holding ChoiceOne Financial Services or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Southern Bancorp vs. ChoiceOne Financial Services
Performance |
| Timeline |
| Great Southern Bancorp |
| ChoiceOne Financial |
Great Southern and ChoiceOne Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Southern and ChoiceOne Financial
The main advantage of trading using opposite Great Southern and ChoiceOne Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Southern position performs unexpectedly, ChoiceOne Financial 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 ChoiceOne Financial will offset losses from the drop in ChoiceOne Financial'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 |
| ChoiceOne Financial vs. Home Federal Bancorp | ChoiceOne Financial vs. First Northwest Bancorp | ChoiceOne Financial vs. Lake Shore Bancorp | ChoiceOne Financial vs. Affinity Bancshares |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |