Correlation Between Southern First and United Community
Can any of the company-specific risk be diversified away by investing in both Southern First and United Community 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 Southern First and United Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern First Bancshares and United Community Banks, you can compare the effects of market volatilities on Southern First and United Community 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 Southern First with a short position of United Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern First and United Community.
Diversification Opportunities for Southern First and United Community
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Southern and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Southern First Bancshares and United Community Banks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Community Banks and Southern First 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 Southern First Bancshares are associated (or correlated) with United Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Community Banks has no effect on the direction of Southern First i.e., Southern First and United Community go up and down completely randomly.
Pair Corralation between Southern First and United Community
If you would invest 3,588 in Southern First Bancshares on November 9, 2024 and sell it today you would earn a total of 170.00 from holding Southern First Bancshares or generate 4.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Southern First Bancshares vs. United Community Banks
Performance |
| Timeline |
| Southern First Bancshares |
| United Community Banks |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Southern First and United Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern First and United Community
The main advantage of trading using opposite Southern First and United Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern First position performs unexpectedly, United Community 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 United Community will offset losses from the drop in United Community's long position.| Southern First vs. First Community | Southern First vs. Old Point Financial | Southern First vs. Oak Valley Bancorp | Southern First vs. Chemung Financial Corp |
| United Community vs. ServisFirst Bancshares | United Community vs. Home BancShares | United Community vs. CNB Financial | United Community vs. Univest Pennsylvania |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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