Correlation Between Macatawa Bank and Great Southern
Can any of the company-specific risk be diversified away by investing in both Macatawa Bank 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 Macatawa Bank and Great Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macatawa Bank and Great Southern Bancorp, you can compare the effects of market volatilities on Macatawa Bank 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 Macatawa Bank with a short position of Great Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macatawa Bank and Great Southern.
Diversification Opportunities for Macatawa Bank and Great Southern
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Macatawa and Great is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Macatawa Bank 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 Macatawa Bank 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 Macatawa Bank 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 Macatawa Bank i.e., Macatawa Bank and Great Southern go up and down completely randomly.
Pair Corralation between Macatawa Bank and Great Southern
If you would invest 5,819 in Great Southern Bancorp on August 24, 2024 and sell it today you would earn a total of 443.00 from holding Great Southern Bancorp or generate 7.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Macatawa Bank vs. Great Southern Bancorp
Performance |
| Timeline |
| Macatawa Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Great Southern Bancorp |
Macatawa Bank and Great Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macatawa Bank and Great Southern
The main advantage of trading using opposite Macatawa Bank and Great Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macatawa Bank 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.| Macatawa Bank vs. Home Federal Bancorp | Macatawa Bank vs. First Capital | Macatawa Bank vs. Magyar Bancorp | Macatawa Bank vs. Community West Bancshares |
| 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |