Correlation Between Investar Holding and Oconee Federal
Can any of the company-specific risk be diversified away by investing in both Investar Holding and Oconee Federal 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 Investar Holding and Oconee Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investar Holding Corp and Oconee Federal Financial, you can compare the effects of market volatilities on Investar Holding and Oconee Federal 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 Investar Holding with a short position of Oconee Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investar Holding and Oconee Federal.
Diversification Opportunities for Investar Holding and Oconee Federal
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Investar and Oconee is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Investar Holding Corp and Oconee Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oconee Federal Financial and Investar Holding 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 Investar Holding Corp are associated (or correlated) with Oconee Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oconee Federal Financial has no effect on the direction of Investar Holding i.e., Investar Holding and Oconee Federal go up and down completely randomly.
Pair Corralation between Investar Holding and Oconee Federal
If you would invest 1,850 in Investar Holding Corp on November 2, 2024 and sell it today you would earn a total of 63.00 from holding Investar Holding Corp or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.97% |
| Values | Daily Returns |
Investar Holding Corp vs. Oconee Federal Financial
Performance |
| Timeline |
| Investar Holding Corp |
| Oconee Federal Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Investar Holding and Oconee Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investar Holding and Oconee Federal
The main advantage of trading using opposite Investar Holding and Oconee Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investar Holding position performs unexpectedly, Oconee Federal 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 Oconee Federal will offset losses from the drop in Oconee Federal's long position.| Investar Holding vs. Magyar Bancorp | Investar Holding vs. Home Federal Bancorp | Investar Holding vs. Community West Bancshares | Investar Holding vs. First Northwest Bancorp |
| Oconee Federal vs. Home Federal Bancorp | Oconee Federal vs. Community West Bancshares | Oconee Federal vs. Magyar Bancorp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |