Correlation Between Security Bank and Oconee Financial
Can any of the company-specific risk be diversified away by investing in both Security Bank and Oconee Financial 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 Oconee Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security Bank and Oconee Financial, you can compare the effects of market volatilities on Security Bank and Oconee Financial 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 Oconee Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security Bank and Oconee Financial.
Diversification Opportunities for Security Bank and Oconee Financial
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Security and Oconee is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Security Bank and Oconee Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oconee Financial 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 are associated (or correlated) with Oconee Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oconee Financial has no effect on the direction of Security Bank i.e., Security Bank and Oconee Financial go up and down completely randomly.
Pair Corralation between Security Bank and Oconee Financial
If you would invest 3,050 in Oconee Financial on September 14, 2024 and sell it today you would earn a total of 950.00 from holding Oconee Financial or generate 31.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Security Bank vs. Oconee Financial
Performance |
| Timeline |
| Security Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Oconee Financial |
Security Bank and Oconee Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security Bank and Oconee Financial
The main advantage of trading using opposite Security Bank and Oconee Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security Bank position performs unexpectedly, Oconee Financial 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 Financial will offset losses from the drop in Oconee Financial's long position.| Security Bank vs. Merchants Marine Bancorp | Security Bank vs. First Bancorp | Security Bank vs. CNB Financial | Security Bank vs. MNB Holdings Corp |
| Oconee Financial vs. Pioneer Bankcorp | Oconee Financial vs. Liberty Northwest Bancorp | Oconee Financial vs. First Community | Oconee Financial vs. Coeur dAlene 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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