Correlation Between Great Southern and TC Bancshares
Can any of the company-specific risk be diversified away by investing in both Great Southern and TC 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 Great Southern and TC Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Southern Bancorp and TC Bancshares, you can compare the effects of market volatilities on Great Southern and TC 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 Great Southern with a short position of TC Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Southern and TC Bancshares.
Diversification Opportunities for Great Southern and TC Bancshares
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Great and TCBC is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Great Southern Bancorp and TC Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Bancshares and Great Southern 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 Great Southern Bancorp are associated (or correlated) with TC Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Bancshares has no effect on the direction of Great Southern i.e., Great Southern and TC Bancshares go up and down completely randomly.
Pair Corralation between Great Southern and TC Bancshares
If you would invest 6,169 in Great Southern Bancorp on September 20, 2024 and sell it today you would earn a total of 11.00 from holding Great Southern Bancorp or generate 0.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.76% |
Values | Daily Returns |
Great Southern Bancorp vs. TC Bancshares
Performance |
Timeline |
Great Southern Bancorp |
TC Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Great Southern and TC Bancshares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Great Southern and TC Bancshares
The main advantage of trading using opposite Great Southern and TC Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Southern position performs unexpectedly, TC 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 TC Bancshares will offset losses from the drop in TC Bancshares' long position.Great Southern vs. First Northwest Bancorp | Great Southern vs. Community West Bancshares | Great Southern vs. First Financial Northwest | Great Southern vs. First Capital |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
CEOs Directory Screen CEOs from public companies around the world | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |