Correlation Between Greenville Federal and OceanFirst Financial
Can any of the company-specific risk be diversified away by investing in both Greenville Federal and OceanFirst Financial 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 OceanFirst Financial 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 OceanFirst Financial Corp, you can compare the effects of market volatilities on Greenville Federal and OceanFirst Financial 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 OceanFirst Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenville Federal and OceanFirst Financial.
Diversification Opportunities for Greenville Federal and OceanFirst Financial
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenville and OceanFirst is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Greenville Federal Financial and OceanFirst Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OceanFirst Financial 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 OceanFirst Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OceanFirst Financial Corp has no effect on the direction of Greenville Federal i.e., Greenville Federal and OceanFirst Financial go up and down completely randomly.
Pair Corralation between Greenville Federal and OceanFirst Financial
Given the investment horizon of 90 days Greenville Federal Financial is expected to under-perform the OceanFirst Financial. In addition to that, Greenville Federal is 1.71 times more volatile than OceanFirst Financial Corp. It trades about -0.3 of its total potential returns per unit of risk. OceanFirst Financial Corp is currently generating about 0.07 per unit of volatility. If you would invest 2,500 in OceanFirst Financial Corp on August 29, 2024 and sell it today you would earn a total of 20.00 from holding OceanFirst Financial Corp or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenville Federal Financial vs. OceanFirst Financial Corp
Performance |
| Timeline |
| Greenville Federal |
| OceanFirst Financial Corp |
Greenville Federal and OceanFirst Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenville Federal and OceanFirst Financial
The main advantage of trading using opposite Greenville Federal and OceanFirst Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenville Federal position performs unexpectedly, OceanFirst Financial 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 OceanFirst Financial will offset losses from the drop in OceanFirst Financial'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 |
| OceanFirst Financial vs. Capital One Financial | OceanFirst Financial vs. Capital One Financial | OceanFirst Financial vs. Bank of America | OceanFirst Financial vs. KeyCorp |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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