Correlation Between TC Bancshares and Main Street
Can any of the company-specific risk be diversified away by investing in both TC Bancshares and Main Street 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 TC Bancshares and Main Street into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TC Bancshares and Main Street Financial, you can compare the effects of market volatilities on TC Bancshares and Main Street 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 TC Bancshares with a short position of Main Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of TC Bancshares and Main Street.
Diversification Opportunities for TC Bancshares and Main Street
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between TCBC and Main is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding TC Bancshares and Main Street Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main Street Financial and TC 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 TC Bancshares are associated (or correlated) with Main Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main Street Financial has no effect on the direction of TC Bancshares i.e., TC Bancshares and Main Street go up and down completely randomly.
Pair Corralation between TC Bancshares and Main Street
If you would invest 1,420 in Main Street Financial on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Main Street Financial or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
TC Bancshares vs. Main Street Financial
Performance |
| Timeline |
| TC Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Main Street Financial |
TC Bancshares and Main Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TC Bancshares and Main Street
The main advantage of trading using opposite TC Bancshares and Main Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TC Bancshares position performs unexpectedly, Main Street 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 Main Street will offset losses from the drop in Main Street's long position.| TC Bancshares vs. Home Federal Bancorp | TC Bancshares vs. Lake Shore Bancorp | TC Bancshares vs. Community West Bancshares | TC Bancshares vs. First Financial Northwest |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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