Correlation Between Greenville Federal and Pinnacle Bancshares
Can any of the company-specific risk be diversified away by investing in both Greenville Federal and Pinnacle 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 Pinnacle 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 Pinnacle Bancshares, you can compare the effects of market volatilities on Greenville Federal and Pinnacle 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 Pinnacle Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenville Federal and Pinnacle Bancshares.
Diversification Opportunities for Greenville Federal and Pinnacle Bancshares
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Greenville and Pinnacle is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Greenville Federal Financial and Pinnacle Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinnacle 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 Pinnacle Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinnacle Bancshares has no effect on the direction of Greenville Federal i.e., Greenville Federal and Pinnacle Bancshares go up and down completely randomly.
Pair Corralation between Greenville Federal and Pinnacle Bancshares
If you would invest 625.00 in Greenville Federal Financial on September 1, 2024 and sell it today you would earn a total of 75.00 from holding Greenville Federal Financial or generate 12.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Greenville Federal Financial vs. Pinnacle Bancshares
Performance |
| Timeline |
| Greenville Federal |
| Pinnacle Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Greenville Federal and Pinnacle Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenville Federal and Pinnacle Bancshares
The main advantage of trading using opposite Greenville Federal and Pinnacle Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenville Federal position performs unexpectedly, Pinnacle 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 Pinnacle Bancshares will offset losses from the drop in Pinnacle 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 |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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