Correlation Between Summit Bank and Genesco
Can any of the company-specific risk be diversified away by investing in both Summit Bank and Genesco 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 Summit Bank and Genesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Bank Group and Genesco, you can compare the effects of market volatilities on Summit Bank and Genesco 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 Summit Bank with a short position of Genesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Bank and Genesco.
Diversification Opportunities for Summit Bank and Genesco
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Summit and Genesco is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Summit Bank Group and Genesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesco and Summit 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 Summit Bank Group are associated (or correlated) with Genesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesco has no effect on the direction of Summit Bank i.e., Summit Bank and Genesco go up and down completely randomly.
Pair Corralation between Summit Bank and Genesco
Given the investment horizon of 90 days Summit Bank Group is expected to under-perform the Genesco. But the pink sheet apears to be less risky and, when comparing its historical volatility, Summit Bank Group is 1.53 times less risky than Genesco. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Genesco is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,182 in Genesco on November 3, 2024 and sell it today you would lose (17.00) from holding Genesco or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Bank Group vs. Genesco
Performance |
| Timeline |
| Summit Bank Group |
| Genesco |
Summit Bank and Genesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Bank and Genesco
The main advantage of trading using opposite Summit Bank and Genesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Bank position performs unexpectedly, Genesco 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 Genesco will offset losses from the drop in Genesco's long position.| Summit Bank vs. Savi Financial | Summit Bank vs. Pacific West Bancorp | Summit Bank vs. Commencement Bancorp | Summit Bank vs. Merchants Marine 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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