Correlation Between Shore Bancshares and Oconee Federal
Can any of the company-specific risk be diversified away by investing in both Shore Bancshares and Oconee 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 Shore Bancshares and Oconee Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shore Bancshares and Oconee Federal Financial, you can compare the effects of market volatilities on Shore Bancshares and Oconee 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 Shore Bancshares with a short position of Oconee Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shore Bancshares and Oconee Federal.
Diversification Opportunities for Shore Bancshares and Oconee Federal
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shore and Oconee is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Shore Bancshares and Oconee Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oconee Federal Financial and Shore Bancshares 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 Shore Bancshares are associated (or correlated) with Oconee Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oconee Federal Financial has no effect on the direction of Shore Bancshares i.e., Shore Bancshares and Oconee Federal go up and down completely randomly.
Pair Corralation between Shore Bancshares and Oconee Federal
If you would invest 1,405 in Shore Bancshares on August 28, 2024 and sell it today you would earn a total of 258.00 from holding Shore Bancshares or generate 18.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Shore Bancshares vs. Oconee Federal Financial
Performance |
| Timeline |
| Shore Bancshares |
| Oconee Federal Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shore Bancshares and Oconee Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shore Bancshares and Oconee Federal
The main advantage of trading using opposite Shore Bancshares and Oconee Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shore Bancshares position performs unexpectedly, Oconee 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 Oconee Federal will offset losses from the drop in Oconee Federal's long position.| Shore Bancshares vs. Home Federal Bancorp | Shore Bancshares vs. IF Bancorp | Shore Bancshares vs. Western New England | Shore Bancshares vs. Colony Bankcorp |
| Oconee Federal vs. Home Federal Bancorp | Oconee Federal vs. Community West Bancshares | Oconee Federal vs. Magyar 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
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |