Correlation Between Great Southern and Guaranty Bancshares,
Can any of the company-specific risk be diversified away by investing in both Great Southern and Guaranty Bancshares, 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 Guaranty Bancshares, 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 Guaranty Bancshares,, you can compare the effects of market volatilities on Great Southern and Guaranty Bancshares, 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 Guaranty Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Southern and Guaranty Bancshares,.
Diversification Opportunities for Great Southern and Guaranty Bancshares,
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Great and Guaranty is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Great Southern Bancorp and Guaranty Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guaranty Bancshares, 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 Guaranty Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guaranty Bancshares, has no effect on the direction of Great Southern i.e., Great Southern and Guaranty Bancshares, go up and down completely randomly.
Pair Corralation between Great Southern and Guaranty Bancshares,
Given the investment horizon of 90 days Great Southern Bancorp is expected to generate 1.17 times more return on investment than Guaranty Bancshares,. However, Great Southern is 1.17 times more volatile than Guaranty Bancshares,. It trades about -0.09 of its potential returns per unit of risk. Guaranty Bancshares, is currently generating about -0.18 per unit of risk. If you would invest 5,953 in Great Southern Bancorp on November 28, 2024 and sell it today you would lose (166.00) from holding Great Southern Bancorp or give up 2.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Southern Bancorp vs. Guaranty Bancshares,
Performance |
| Timeline |
| Great Southern Bancorp |
| Guaranty Bancshares, |
Great Southern and Guaranty Bancshares, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Southern and Guaranty Bancshares,
The main advantage of trading using opposite Great Southern and Guaranty Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Southern position performs unexpectedly, Guaranty Bancshares, 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 Guaranty Bancshares, will offset losses from the drop in Guaranty Bancshares,'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 |
| Guaranty Bancshares, vs. First Community | Guaranty Bancshares, vs. Community West Bancshares | Guaranty Bancshares, vs. First Financial Northwest | Guaranty Bancshares, vs. First Northwest 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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