Correlation Between CrossFirst Bankshares and Stellar Bancorp,

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

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

Diversification Opportunities for CrossFirst Bankshares and Stellar Bancorp,

0.69

Correlation Coefficient

CrossFirst Bankshares  Stellar Bancorp,

Poor diversification

The 3 months correlation between CrossFirst and Stellar is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CrossFirst Bankshares and Stellar Bancorp, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellar Bancorp, and CrossFirst Bankshares 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 CrossFirst Bankshares are associated (or correlated) with Stellar Bancorp,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellar Bancorp, has no effect on the direction of CrossFirst Bankshares i.e., CrossFirst Bankshares and Stellar Bancorp, go up and down completely randomly.

Pair Corralation between CrossFirst Bankshares and Stellar Bancorp,

Considering the 90-day investment horizon CrossFirst Bankshares is expected to generate 1.93 times less return on investment than Stellar Bancorp,. In addition to that, CrossFirst Bankshares is 1.09 times more volatile than Stellar Bancorp,. It trades about 0.07 of its total potential returns per unit of risk. Stellar Bancorp, is currently generating about 0.15 per unit of volatility. If you would invest  2,621  in Stellar Bancorp, on September 13, 2024 and sell it today you would earn a total of  425.00  from holding Stellar Bancorp, or generate 16.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.67%
Values	Daily Returns

CrossFirst Bankshares  vs.  Stellar Bancorp,

CrossFirst Bankshares

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CrossFirst Bankshares are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, CrossFirst Bankshares is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Stellar Bancorp,

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Stellar Bancorp, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, Stellar Bancorp, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CrossFirst Bankshares and Stellar Bancorp,

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

The idea behind CrossFirst Bankshares and Stellar Bancorp, 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.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.