Correlation Between Affinity Bancshares and Guaranty Bancshares,

Can any of the company-specific risk be diversified away by investing in both Affinity Bancshares and Guaranty Bancshares, 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 Affinity Bancshares and Guaranty Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Affinity Bancshares and Guaranty Bancshares,, you can compare the effects of market volatilities on Affinity Bancshares and Guaranty Bancshares, 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 Affinity Bancshares with a short position of Guaranty Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affinity Bancshares and Guaranty Bancshares,.

Diversification Opportunities for Affinity Bancshares and Guaranty Bancshares,

0.15

Correlation Coefficient

Affinity Bancshares  Guaranty Bancshares,

Average diversification

The 3 months correlation between Affinity and Guaranty is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Affinity Bancshares and Guaranty Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guaranty Bancshares, and Affinity 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 Affinity Bancshares are associated (or correlated) with Guaranty Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guaranty Bancshares, has no effect on the direction of Affinity Bancshares i.e., Affinity Bancshares and Guaranty Bancshares, go up and down completely randomly.

Pair Corralation between Affinity Bancshares and Guaranty Bancshares,

Given the investment horizon of 90 days Affinity Bancshares is expected to under-perform the Guaranty Bancshares,. In addition to that, Affinity Bancshares is 1.36 times more volatile than Guaranty Bancshares,. It trades about -0.15 of its total potential returns per unit of risk. Guaranty Bancshares, is currently generating about 0.04 per unit of volatility. If you would invest  3,317  in Guaranty Bancshares, on October 6, 2024 and sell it today you would earn a total of  103.00  from holding Guaranty Bancshares, or generate 3.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	97.62%
Values	Daily Returns

Affinity Bancshares  vs.  Guaranty Bancshares,

Affinity Bancshares

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Affinity Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental drivers remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Guaranty Bancshares,

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Guaranty Bancshares, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Guaranty Bancshares, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Affinity Bancshares and Guaranty Bancshares,

The main advantage of trading using opposite Affinity Bancshares and Guaranty Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affinity Bancshares position performs unexpectedly, Guaranty Bancshares, 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 Guaranty Bancshares, will offset losses from the drop in Guaranty Bancshares,'s long position.

The idea behind Affinity Bancshares and Guaranty Bancshares, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.