Correlation Between Intercorp Financial and Great Southern
Can any of the company-specific risk be diversified away by investing in both Intercorp Financial and Great Southern 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 Intercorp Financial and Great Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercorp Financial Services and Great Southern Bancorp, you can compare the effects of market volatilities on Intercorp Financial and Great Southern 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 Intercorp Financial with a short position of Great Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercorp Financial and Great Southern.
Diversification Opportunities for Intercorp Financial and Great Southern
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intercorp and Great is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Intercorp Financial Services and Great Southern Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Southern Bancorp and Intercorp Financial 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 Intercorp Financial Services are associated (or correlated) with Great Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Southern Bancorp has no effect on the direction of Intercorp Financial i.e., Intercorp Financial and Great Southern go up and down completely randomly.
Pair Corralation between Intercorp Financial and Great Southern
Considering the 90-day investment horizon Intercorp Financial is expected to generate 3.01 times less return on investment than Great Southern. But when comparing it to its historical volatility, Intercorp Financial Services is 3.06 times less risky than Great Southern. It trades about 0.19 of its potential returns per unit of risk. Great Southern Bancorp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 5,666 in Great Southern Bancorp on September 4, 2024 and sell it today you would earn a total of 769.00 from holding Great Southern Bancorp or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intercorp Financial Services vs. Great Southern Bancorp
Performance |
| Timeline |
| Intercorp Financial |
| Great Southern Bancorp |
Intercorp Financial and Great Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercorp Financial and Great Southern
The main advantage of trading using opposite Intercorp Financial and Great Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercorp Financial position performs unexpectedly, Great Southern 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 Great Southern will offset losses from the drop in Great Southern's long position.| Intercorp Financial vs. International Bancshares | Intercorp Financial vs. Finward Bancorp | Intercorp Financial vs. Aquagold International | Intercorp Financial vs. Thrivent High Yield |
| Great Southern vs. International Bancshares | Great Southern vs. Finward Bancorp | Great Southern vs. Aquagold International | Great Southern vs. Thrivent High Yield |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |