Correlation Between OceanFirst Financial and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both OceanFirst Financial 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 OceanFirst Financial and Greenville Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OceanFirst Financial Corp and Greenville Federal Financial, you can compare the effects of market volatilities on OceanFirst Financial 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 OceanFirst Financial with a short position of Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of OceanFirst Financial and Greenville Federal.
Diversification Opportunities for OceanFirst Financial and Greenville Federal
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between OceanFirst and Greenville is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding OceanFirst Financial Corp and Greenville Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenville Federal and OceanFirst Financial 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 OceanFirst Financial Corp 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 OceanFirst Financial i.e., OceanFirst Financial and Greenville Federal go up and down completely randomly.
Pair Corralation between OceanFirst Financial and Greenville Federal
Assuming the 90 days horizon OceanFirst Financial Corp is expected to generate 0.72 times more return on investment than Greenville Federal. However, OceanFirst Financial Corp is 1.39 times less risky than Greenville Federal. It trades about 0.03 of its potential returns per unit of risk. Greenville Federal Financial is currently generating about 0.0 per unit of risk. If you would invest 2,167 in OceanFirst Financial Corp on August 26, 2024 and sell it today you would earn a total of 353.00 from holding OceanFirst Financial Corp or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
OceanFirst Financial Corp vs. Greenville Federal Financial
Performance |
| Timeline |
| OceanFirst Financial Corp |
| Greenville Federal |
OceanFirst Financial and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OceanFirst Financial and Greenville Federal
The main advantage of trading using opposite OceanFirst Financial and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OceanFirst Financial 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.| OceanFirst Financial vs. Capital One Financial | OceanFirst Financial vs. Capital One Financial | OceanFirst Financial vs. Bank of America | OceanFirst Financial vs. KeyCorp |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |