Correlation Between Great Southern and Macatawa Bank
Can any of the company-specific risk be diversified away by investing in both Great Southern and Macatawa Bank 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 Macatawa Bank 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 Macatawa Bank, you can compare the effects of market volatilities on Great Southern and Macatawa Bank 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 Macatawa Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Southern and Macatawa Bank.
Diversification Opportunities for Great Southern and Macatawa Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Great and Macatawa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Great Southern Bancorp and Macatawa Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macatawa Bank 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 Macatawa Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macatawa Bank has no effect on the direction of Great Southern i.e., Great Southern and Macatawa Bank go up and down completely randomly.
Pair Corralation between Great Southern and Macatawa Bank
If you would invest (100.00) in Macatawa Bank on October 20, 2024 and sell it today you would earn a total of 100.00 from holding Macatawa Bank or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Great Southern Bancorp vs. Macatawa Bank
Performance |
| Timeline |
| Great Southern Bancorp |
| Macatawa Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Great Southern and Macatawa Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Southern and Macatawa Bank
The main advantage of trading using opposite Great Southern and Macatawa Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Southern position performs unexpectedly, Macatawa Bank 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 Macatawa Bank will offset losses from the drop in Macatawa Bank'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 |
| Macatawa Bank vs. Home Federal Bancorp | Macatawa Bank vs. First Capital | Macatawa Bank vs. Magyar Bancorp | Macatawa Bank 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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