Correlation Between Security Bank and Prime Media
Can any of the company-specific risk be diversified away by investing in both Security Bank and Prime Media 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 Security Bank and Prime Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security Bank Corp and Prime Media Holdings, you can compare the effects of market volatilities on Security Bank and Prime Media 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 Security Bank with a short position of Prime Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security Bank and Prime Media.
Diversification Opportunities for Security Bank and Prime Media
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Security and Prime is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Security Bank Corp and Prime Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Media Holdings and Security 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 Security Bank Corp are associated (or correlated) with Prime Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Media Holdings has no effect on the direction of Security Bank i.e., Security Bank and Prime Media go up and down completely randomly.
Pair Corralation between Security Bank and Prime Media
Assuming the 90 days trading horizon Security Bank Corp is expected to generate 0.73 times more return on investment than Prime Media. However, Security Bank Corp is 1.37 times less risky than Prime Media. It trades about -0.11 of its potential returns per unit of risk. Prime Media Holdings is currently generating about -0.35 per unit of risk. If you would invest 9,241 in Security Bank Corp on August 28, 2024 and sell it today you would lose (586.00) from holding Security Bank Corp or give up 6.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Security Bank Corp vs. Prime Media Holdings
Performance |
| Timeline |
| Security Bank Corp |
| Prime Media Holdings |
Security Bank and Prime Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security Bank and Prime Media
The main advantage of trading using opposite Security Bank and Prime Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security Bank position performs unexpectedly, Prime Media 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 Prime Media will offset losses from the drop in Prime Media's long position.The idea behind Security Bank Corp and Prime Media Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Prime Media vs. Asia United Bank | Prime Media vs. Metro Retail Stores | Prime Media vs. BDO Unibank | Prime Media vs. Converge Information Communications |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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