Correlation Between Greenville Federal and Glen Burnie
Can any of the company-specific risk be diversified away by investing in both Greenville Federal and Glen Burnie 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 Glen Burnie 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 Glen Burnie Bancorp, you can compare the effects of market volatilities on Greenville Federal and Glen Burnie 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 Glen Burnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenville Federal and Glen Burnie.
Diversification Opportunities for Greenville Federal and Glen Burnie
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Greenville and Glen is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Greenville Federal Financial and Glen Burnie Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glen Burnie Bancorp 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 Glen Burnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glen Burnie Bancorp has no effect on the direction of Greenville Federal i.e., Greenville Federal and Glen Burnie go up and down completely randomly.
Pair Corralation between Greenville Federal and Glen Burnie
Given the investment horizon of 90 days Greenville Federal is expected to generate 98.77 times less return on investment than Glen Burnie. But when comparing it to its historical volatility, Greenville Federal Financial is 16.47 times less risky than Glen Burnie. It trades about 0.01 of its potential returns per unit of risk. Glen Burnie Bancorp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 730.00 in Glen Burnie Bancorp on August 29, 2024 and sell it today you would lose (139.00) from holding Glen Burnie Bancorp or give up 19.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenville Federal Financial vs. Glen Burnie Bancorp
Performance |
| Timeline |
| Greenville Federal |
| Glen Burnie Bancorp |
Greenville Federal and Glen Burnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenville Federal and Glen Burnie
The main advantage of trading using opposite Greenville Federal and Glen Burnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenville Federal position performs unexpectedly, Glen Burnie 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 Glen Burnie will offset losses from the drop in Glen Burnie's 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 |
| Glen Burnie vs. Fifth Third Bancorp | Glen Burnie vs. Huntington Bancshares Incorporated | Glen Burnie vs. MT Bank |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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