Correlation Between Sandy Spring and Southside Bancshares,
Can any of the company-specific risk be diversified away by investing in both Sandy Spring and Southside Bancshares, 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 Sandy Spring and Southside Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandy Spring Bancorp and Southside Bancshares,, you can compare the effects of market volatilities on Sandy Spring and Southside Bancshares, 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 Sandy Spring with a short position of Southside Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandy Spring and Southside Bancshares,.
Diversification Opportunities for Sandy Spring and Southside Bancshares,
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sandy and Southside is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sandy Spring Bancorp and Southside Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southside Bancshares, and Sandy Spring 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 Sandy Spring Bancorp are associated (or correlated) with Southside Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southside Bancshares, has no effect on the direction of Sandy Spring i.e., Sandy Spring and Southside Bancshares, go up and down completely randomly.
Pair Corralation between Sandy Spring and Southside Bancshares,
Given the investment horizon of 90 days Sandy Spring Bancorp is expected to generate 1.13 times more return on investment than Southside Bancshares,. However, Sandy Spring is 1.13 times more volatile than Southside Bancshares,. It trades about 0.07 of its potential returns per unit of risk. Southside Bancshares, is currently generating about 0.04 per unit of risk. If you would invest 2,345 in Sandy Spring Bancorp on August 31, 2024 and sell it today you would earn a total of 1,423 from holding Sandy Spring Bancorp or generate 60.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandy Spring Bancorp vs. Southside Bancshares,
Performance |
| Timeline |
| Sandy Spring Bancorp |
| Southside Bancshares, |
Sandy Spring and Southside Bancshares, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandy Spring and Southside Bancshares,
The main advantage of trading using opposite Sandy Spring and Southside Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandy Spring position performs unexpectedly, Southside Bancshares, 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 Southside Bancshares, will offset losses from the drop in Southside Bancshares,'s long position.| Sandy Spring vs. Northrim BanCorp | Sandy Spring vs. Provident Financial Services | Sandy Spring vs. Community Trust Bancorp | Sandy Spring vs. First Interstate BancSystem |
| Southside Bancshares, vs. Finward Bancorp | Southside Bancshares, vs. Community West Bancshares | Southside Bancshares, vs. First Financial Northwest | Southside Bancshares, vs. Northfield Bancorp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |