Correlation Between Great Southern and Lake Shore
Can any of the company-specific risk be diversified away by investing in both Great Southern and Lake Shore 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 Lake Shore 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 Lake Shore Bancorp, you can compare the effects of market volatilities on Great Southern and Lake Shore 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 Lake Shore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Southern and Lake Shore.
Diversification Opportunities for Great Southern and Lake Shore
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Great and Lake is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Great Southern Bancorp and Lake Shore Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lake Shore Bancorp 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 Lake Shore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lake Shore Bancorp has no effect on the direction of Great Southern i.e., Great Southern and Lake Shore go up and down completely randomly.
Pair Corralation between Great Southern and Lake Shore
Given the investment horizon of 90 days Great Southern Bancorp is expected to under-perform the Lake Shore. But the stock apears to be less risky and, when comparing its historical volatility, Great Southern Bancorp is 2.21 times less risky than Lake Shore. The stock trades about -0.11 of its potential returns per unit of risk. The Lake Shore Bancorp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,346 in Lake Shore Bancorp on November 2, 2024 and sell it today you would earn a total of 218.00 from holding Lake Shore Bancorp or generate 16.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.61% |
| Values | Daily Returns |
Great Southern Bancorp vs. Lake Shore Bancorp
Performance |
| Timeline |
| Great Southern Bancorp |
| Lake Shore Bancorp |
Great Southern and Lake Shore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Southern and Lake Shore
The main advantage of trading using opposite Great Southern and Lake Shore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Southern position performs unexpectedly, Lake Shore 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 Lake Shore will offset losses from the drop in Lake Shore's long position.| Great Southern vs. KeyCorp | Great Southern vs. Zions Bancorporation | Great Southern vs. Huntington Bancshares Incorporated | Great Southern vs. Comerica |
| Lake Shore vs. Home Federal Bancorp | Lake Shore vs. Magyar Bancorp | Lake Shore vs. Community West 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
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |