Correlation Between Luther Burbank and Great Southern
Can any of the company-specific risk be diversified away by investing in both Luther Burbank 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 Luther Burbank and Great Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luther Burbank and Great Southern Bancorp, you can compare the effects of market volatilities on Luther Burbank 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 Luther Burbank with a short position of Great Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luther Burbank and Great Southern.
Diversification Opportunities for Luther Burbank and Great Southern
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Luther and Great is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Luther Burbank 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 Luther Burbank 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 Luther Burbank 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 Luther Burbank i.e., Luther Burbank and Great Southern go up and down completely randomly.
Pair Corralation between Luther Burbank and Great Southern
If you would invest 5,856 in Great Southern Bancorp on November 2, 2024 and sell it today you would earn a total of 143.00 from holding Great Southern Bancorp or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
Luther Burbank vs. Great Southern Bancorp
Performance |
| Timeline |
| Luther Burbank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Great Southern Bancorp |
Luther Burbank and Great Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luther Burbank and Great Southern
The main advantage of trading using opposite Luther Burbank and Great Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luther Burbank 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.| Luther Burbank vs. First Community | Luther Burbank vs. Community West Bancshares | Luther Burbank vs. First Financial Northwest | Luther Burbank vs. First Northwest Bancorp |
| Great Southern vs. First Northwest Bancorp | Great Southern vs. Community West Bancshares | Great Southern vs. First Financial Northwest | Great Southern vs. First Capital |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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