Correlation Between SmartFinancial, and Great Southern
Can any of the company-specific risk be diversified away by investing in both SmartFinancial, and Great Southern 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 SmartFinancial, and Great Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmartFinancial, and Great Southern Bancorp, you can compare the effects of market volatilities on SmartFinancial, and Great Southern 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 SmartFinancial, with a short position of Great Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartFinancial, and Great Southern.
Diversification Opportunities for SmartFinancial, and Great Southern
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SmartFinancial, and Great is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding SmartFinancial, and Great Southern Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Southern Bancorp and SmartFinancial, 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 SmartFinancial, are associated (or correlated) with Great Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Southern Bancorp has no effect on the direction of SmartFinancial, i.e., SmartFinancial, and Great Southern go up and down completely randomly.
Pair Corralation between SmartFinancial, and Great Southern
Given the investment horizon of 90 days SmartFinancial, is expected to generate 0.89 times more return on investment than Great Southern. However, SmartFinancial, is 1.13 times less risky than Great Southern. It trades about 0.04 of its potential returns per unit of risk. Great Southern Bancorp is currently generating about 0.01 per unit of risk. If you would invest 3,299 in SmartFinancial, on November 27, 2024 and sell it today you would earn a total of 148.00 from holding SmartFinancial, or generate 4.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SmartFinancial, vs. Great Southern Bancorp
Performance |
Timeline |
SmartFinancial, |
Great Southern Bancorp |
SmartFinancial, and Great Southern Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SmartFinancial, and Great Southern
The main advantage of trading using opposite SmartFinancial, and Great Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartFinancial, position performs unexpectedly, Great Southern 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 Great Southern will offset losses from the drop in Great Southern's long position.SmartFinancial, vs. Home Federal Bancorp | ||
SmartFinancial, vs. Lake Shore Bancorp | ||
SmartFinancial, vs. Community West Bancshares | ||
SmartFinancial, vs. First Financial Northwest |
Great Southern vs. First Northwest Bancorp | ||
Great Southern vs. Community West Bancshares | ||
Great Southern vs. First Financial Northwest | ||
Great Southern vs. First Capital |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |