Correlation Between BOK Financial and First Bancshares,
Can any of the company-specific risk be diversified away by investing in both BOK Financial and First 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 BOK Financial and First Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOK Financial and The First Bancshares,, you can compare the effects of market volatilities on BOK Financial and First 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 BOK Financial with a short position of First Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOK Financial and First Bancshares,.
Diversification Opportunities for BOK Financial and First Bancshares,
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BOK and First is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding BOK Financial and The First Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancshares, and BOK Financial 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 BOK Financial are associated (or correlated) with First Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancshares, has no effect on the direction of BOK Financial i.e., BOK Financial and First Bancshares, go up and down completely randomly.
Pair Corralation between BOK Financial and First Bancshares,
Given the investment horizon of 90 days BOK Financial is expected to generate 1.43 times less return on investment than First Bancshares,. But when comparing it to its historical volatility, BOK Financial is 1.12 times less risky than First Bancshares,. It trades about 0.04 of its potential returns per unit of risk. The First Bancshares, is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,384 in The First Bancshares, on December 2, 2024 and sell it today you would earn a total of 1,183 from holding The First Bancshares, or generate 49.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BOK Financial vs. The First Bancshares,
Performance |
Timeline |
BOK Financial |
First Bancshares, |
BOK Financial and First Bancshares, Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BOK Financial and First Bancshares,
The main advantage of trading using opposite BOK Financial and First Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOK Financial position performs unexpectedly, First 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 First Bancshares, will offset losses from the drop in First Bancshares,'s long position.BOK Financial vs. First Financial Bankshares | BOK Financial vs. Auburn National Bancorporation | BOK Financial vs. Great Southern Bancorp | BOK Financial vs. First Guaranty Bancshares |
First Bancshares, vs. First Northwest Bancorp | First Bancshares, vs. Community West Bancshares | First Bancshares, vs. First Financial Northwest | First Bancshares, vs. Great Southern 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |