Correlation Between Kentucky First and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both Kentucky First and Greenville 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 Kentucky First and Greenville Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kentucky First Federal and Greenville Federal Financial, you can compare the effects of market volatilities on Kentucky First and Greenville 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 Kentucky First with a short position of Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kentucky First and Greenville Federal.
Diversification Opportunities for Kentucky First and Greenville Federal
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kentucky and Greenville is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Kentucky First Federal and Greenville Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenville Federal and Kentucky First 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 Kentucky First Federal are associated (or correlated) with Greenville Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenville Federal has no effect on the direction of Kentucky First i.e., Kentucky First and Greenville Federal go up and down completely randomly.
Pair Corralation between Kentucky First and Greenville Federal
Given the investment horizon of 90 days Kentucky First Federal is expected to under-perform the Greenville Federal. In addition to that, Kentucky First is 1.06 times more volatile than Greenville Federal Financial. It trades about -0.05 of its total potential returns per unit of risk. Greenville Federal Financial is currently generating about 0.0 per unit of volatility. If you would invest 900.00 in Greenville Federal Financial on August 26, 2024 and sell it today you would lose (200.00) from holding Greenville Federal Financial or give up 22.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Kentucky First Federal vs. Greenville Federal Financial
Performance |
| Timeline |
| Kentucky First Federal |
| Greenville Federal |
Kentucky First and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kentucky First and Greenville Federal
The main advantage of trading using opposite Kentucky First and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kentucky First position performs unexpectedly, Greenville 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 Greenville Federal will offset losses from the drop in Greenville Federal's long position.| Kentucky First vs. Home Federal Bancorp | Kentucky First vs. Lake Shore Bancorp | Kentucky First vs. Commerzbank AG | Kentucky First vs. Investar Holding Corp |
| Greenville Federal vs. Standard Bank Group | Greenville Federal vs. PSB Holdings | Greenville Federal vs. United Overseas Bank | Greenville Federal vs. Turkiye Garanti Bankasi |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |