Correlation Between Greenville Federal and First Keystone
Can any of the company-specific risk be diversified away by investing in both Greenville Federal and First Keystone 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 First Keystone 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 First Keystone Corp, you can compare the effects of market volatilities on Greenville Federal and First Keystone 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 First Keystone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenville Federal and First Keystone.
Diversification Opportunities for Greenville Federal and First Keystone
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Greenville and First is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Greenville Federal Financial and First Keystone Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Keystone Corp 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 First Keystone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Keystone Corp has no effect on the direction of Greenville Federal i.e., Greenville Federal and First Keystone go up and down completely randomly.
Pair Corralation between Greenville Federal and First Keystone
Given the investment horizon of 90 days Greenville Federal Financial is expected to under-perform the First Keystone. But the pink sheet apears to be less risky and, when comparing its historical volatility, Greenville Federal Financial is 1.71 times less risky than First Keystone. The pink sheet trades about 0.0 of its potential returns per unit of risk. The First Keystone Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,946 in First Keystone Corp on August 26, 2024 and sell it today you would lose (418.00) from holding First Keystone Corp or give up 21.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.35% |
| Values | Daily Returns |
Greenville Federal Financial vs. First Keystone Corp
Performance |
| Timeline |
| Greenville Federal |
| First Keystone Corp |
Greenville Federal and First Keystone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenville Federal and First Keystone
The main advantage of trading using opposite Greenville Federal and First Keystone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenville Federal position performs unexpectedly, First Keystone 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 First Keystone will offset losses from the drop in First Keystone's long position.| Greenville Federal vs. Standard Bank Group | Greenville Federal vs. PSB Holdings | Greenville Federal vs. United Overseas Bank | Greenville Federal vs. Turkiye Garanti Bankasi |
| First Keystone vs. Citizens Bancorp Investment | First Keystone vs. Greenville Federal Financial | First Keystone vs. Oak Ridge Financial | First Keystone vs. Main Street Financial |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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