German American Correlations

GABC Stock

USD 38.14 0.21 0.55%

The current 90-days correlation between German American Bancorp and Lakeland Financial is 0.75 (i.e., Poor diversification). The correlation of German American is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

German American Correlation With Market

Very weak diversification

The correlation between German American Bancorp and DJI is 0.42 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding German American Bancorp and DJI in the same portfolio, assuming nothing else is changed.

Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in German American Bancorp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.

Moving together with German Stock

0.67	AX	Axos Financial	Pair Corr
0.84	BY	Byline Bancorp	Pair Corr
0.66	PB	Prosperity Bancshares	Pair Corr
0.63	RF	Regions Financial Normal Trading	Pair Corr
0.65	VABK	Virginia National	Pair Corr
0.82	VBTX	Veritex Holdings	Pair Corr
0.61	EBTC	Enterprise Bancorp	Pair Corr
0.67	EFSC	Enterprise Financial	Pair Corr
0.73	EGBN	Eagle Bancorp	Pair Corr
0.8	EQBK	Equity Bancshares,	Pair Corr
0.61	TFINP	Triumph Financial	Pair Corr
0.71	EVBN	Evans Bancorp	Pair Corr
0.76	WMPN	William Penn Bancorp	Pair Corr

Moving against German Stock

0.68	VBFC	Village Bank	Pair Corr
0.41	DB	Deutsche Bank AG	Pair Corr
0.33	TECTP	Tectonic Financial	Pair Corr
0.35	KEY-PI	KeyCorp	Pair Corr

Related Correlations Analysis

	LKFN	GSBC	FRME	THFF	FCBC
LKFN		0.86	0.2	-0.22	0.8	LKFN
GSBC	0.86		0.28	-0.07	0.79	GSBC
FRME	0.2	0.28		0.84	0.6	FRME
THFF	-0.22	-0.07	0.84		0.23	THFF
FCBC	0.8	0.79	0.6	0.23		FCBC
	LKFN	GSBC	FRME	THFF	FCBC

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

GSBC	+ 0.86	LKFN
THFF	+ 0.84	FRME
FCBC	+ 0.8	LKFN
FCBC	+ 0.79	GSBC
FCBC	+ 0.6	FRME
FRME	+ 0.28	GSBC

High negative correlations

THFF	- 0.22	LKFN
THFF	- 0.07	GSBC

Risk-Adjusted Indicators

There is a big difference between German Stock performing well and German American Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze German American's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
LKFN	1.05	(0.25)	0.00	(0.34)	0.00	0.00	1.93	(2.77)	7.19
GSBC	1.25	(0.19)	0.00	(0.21)	0.00	0.00	2.41	(3.02)	7.73
FRME	1.30	(0.05)	0.00	(0.05)	0.00	0.00	2.90	(2.06)	8.01
THFF	1.25	0.06	0.04	0.06	1.61	(1.33)	2.84	(2.82)	7.70
FCBC	1.45	(0.24)	0.00	(0.19)	0.00	0.00	3.00	(3.33)	9.44

German American Corporate Executives

Elected by the shareholders, the German American's board of directors comprises two types of representatives: German American inside directors who are chosen from within the company, and outside directors, selected externally and held independent of German. The board's role is to monitor German American's management team and ensure that shareholders' interests are well served. German American's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, German American's outside directors are responsible for providing unbiased perspectives on the board's policies.

Bradley Rust

CFO, Executive VP, Sr. Admin. Officer, CFO of German American Bank, Executive VP of German American Bank and Sr. Admin. Officer of The German American Bank

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