Correlation Between Greenville Federal and Patriot National
Can any of the company-specific risk be diversified away by investing in both Greenville Federal and Patriot National 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 Patriot National 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 Patriot National Bancorp, you can compare the effects of market volatilities on Greenville Federal and Patriot National 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 Patriot National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenville Federal and Patriot National.
Diversification Opportunities for Greenville Federal and Patriot National
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenville and Patriot is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Greenville Federal Financial and Patriot National Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patriot National 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 Patriot National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patriot National Bancorp has no effect on the direction of Greenville Federal i.e., Greenville Federal and Patriot National go up and down completely randomly.
Pair Corralation between Greenville Federal and Patriot National
Given the investment horizon of 90 days Greenville Federal Financial is expected to under-perform the Patriot National. But the pink sheet apears to be less risky and, when comparing its historical volatility, Greenville Federal Financial is 11.37 times less risky than Patriot National. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Patriot National Bancorp is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 164.00 in Patriot National Bancorp on September 3, 2024 and sell it today you would earn a total of 61.00 from holding Patriot National Bancorp or generate 37.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Greenville Federal Financial vs. Patriot National Bancorp
Performance |
| Timeline |
| Greenville Federal |
| Patriot National Bancorp |
Greenville Federal and Patriot National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenville Federal and Patriot National
The main advantage of trading using opposite Greenville Federal and Patriot National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenville Federal position performs unexpectedly, Patriot National 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 Patriot National will offset losses from the drop in Patriot National'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 |
| Patriot National vs. Citizens Bancorp Investment | Patriot National vs. First Keystone Corp | Patriot National vs. Greenville Federal Financial | Patriot National vs. Oak Ridge 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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