Correlation Between Mid Southern and Southern Banc
Can any of the company-specific risk be diversified away by investing in both Mid Southern and Southern Banc 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 Mid Southern and Southern Banc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Southern Bancorp and Southern Banc, you can compare the effects of market volatilities on Mid Southern and Southern Banc 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 Mid Southern with a short position of Southern Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Southern and Southern Banc.
Diversification Opportunities for Mid Southern and Southern Banc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mid and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mid Southern Bancorp and Southern Banc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Banc and Mid Southern 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 Mid Southern Bancorp are associated (or correlated) with Southern Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Banc has no effect on the direction of Mid Southern i.e., Mid Southern and Southern Banc go up and down completely randomly.
Pair Corralation between Mid Southern and Southern Banc
If you would invest (100.00) in Southern Banc on December 4, 2024 and sell it today you would earn a total of 100.00 from holding Southern Banc or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mid Southern Bancorp vs. Southern Banc
Performance |
| Timeline |
| Mid Southern Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Southern Banc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Mid Southern and Southern Banc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Southern and Southern Banc
The main advantage of trading using opposite Mid Southern and Southern Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Southern position performs unexpectedly, Southern Banc 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 Southern Banc will offset losses from the drop in Southern Banc's long position.| Mid Southern vs. Community West Bancshares | Mid Southern vs. First Financial Northwest | Mid Southern vs. CF Bankshares | Mid Southern vs. Home Federal Bancorp |
| Southern Banc vs. 1895 of Wisconsin | Southern Banc vs. OptimumBank Holdings, | Southern Banc vs. First National Bank | Southern Banc vs. CNB Financial |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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