Correlation Between Ottawa Savings and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both Ottawa Savings 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 Ottawa Savings and Greenville Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ottawa Savings Bancorp and Greenville Federal Financial, you can compare the effects of market volatilities on Ottawa Savings 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 Ottawa Savings with a short position of Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ottawa Savings and Greenville Federal.
Diversification Opportunities for Ottawa Savings and Greenville Federal
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ottawa and Greenville is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ottawa Savings Bancorp and Greenville Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenville Federal and Ottawa Savings 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 Ottawa Savings Bancorp 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 Ottawa Savings i.e., Ottawa Savings and Greenville Federal go up and down completely randomly.
Pair Corralation between Ottawa Savings and Greenville Federal
Given the investment horizon of 90 days Ottawa Savings Bancorp is expected to generate 0.26 times more return on investment than Greenville Federal. However, Ottawa Savings Bancorp is 3.83 times less risky than Greenville Federal. It trades about 0.09 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 1,252 in Ottawa Savings Bancorp on September 3, 2024 and sell it today you would earn a total of 33.00 from holding Ottawa Savings Bancorp or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 7.86% |
| Values | Daily Returns |
Ottawa Savings Bancorp vs. Greenville Federal Financial
Performance |
| Timeline |
| Ottawa Savings Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greenville Federal |
Ottawa Savings and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ottawa Savings and Greenville Federal
The main advantage of trading using opposite Ottawa Savings and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ottawa Savings 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.| Ottawa Savings vs. Lake Shore Bancorp | Ottawa Savings vs. IF Bancorp | Ottawa Savings vs. Home Federal Bancorp |
| Greenville Federal vs. First Bankers Trustshares | Greenville Federal vs. First Ottawa Bancshares | Greenville Federal vs. Coastal Carolina Bancshares | Greenville Federal vs. Citizens Bancorp Investment |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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