Correlation Between Greenville Federal and Croghan Bancshares
Can any of the company-specific risk be diversified away by investing in both Greenville Federal and Croghan 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 Greenville Federal and Croghan Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenville Federal Financial and Croghan Bancshares, you can compare the effects of market volatilities on Greenville Federal and Croghan 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 Greenville Federal with a short position of Croghan Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenville Federal and Croghan Bancshares.
Diversification Opportunities for Greenville Federal and Croghan Bancshares
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Greenville and Croghan is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Greenville Federal Financial and Croghan Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Croghan Bancshares and Greenville Federal 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 Greenville Federal Financial are associated (or correlated) with Croghan Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Croghan Bancshares has no effect on the direction of Greenville Federal i.e., Greenville Federal and Croghan Bancshares go up and down completely randomly.
Pair Corralation between Greenville Federal and Croghan Bancshares
Given the investment horizon of 90 days Greenville Federal Financial is expected to generate 1.35 times more return on investment than Croghan Bancshares. However, Greenville Federal is 1.35 times more volatile than Croghan Bancshares. It trades about 0.08 of its potential returns per unit of risk. Croghan Bancshares is currently generating about -0.01 per unit of risk. If you would invest 700.00 in Greenville Federal Financial on October 22, 2024 and sell it today you would earn a total of 21.00 from holding Greenville Federal Financial or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Greenville Federal Financial vs. Croghan Bancshares
Performance |
| Timeline |
| Greenville Federal |
| Croghan Bancshares |
Greenville Federal and Croghan Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenville Federal and Croghan Bancshares
The main advantage of trading using opposite Greenville Federal and Croghan Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenville Federal position performs unexpectedly, Croghan 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 Croghan Bancshares will offset losses from the drop in Croghan Bancshares' long position.| Greenville Federal vs. First Bankers Trustshares | Greenville Federal vs. First Ottawa Bancshares | Greenville Federal vs. Coastal Carolina Bancshares | Greenville Federal vs. Citizens Bancorp Investment |
| Croghan Bancshares vs. First Bankers Trustshares | Croghan Bancshares vs. Greenville Federal Financial | Croghan Bancshares vs. First Ottawa Bancshares | Croghan Bancshares vs. Citizens Bancorp Investment |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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