Correlation Between Northfield Bancorp and Southside Bancshares,

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

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

Diversification Opportunities for Northfield Bancorp and Southside Bancshares,

0.95

Correlation Coefficient

Northfield Bancorp  Southside Bancshares,

Almost no diversification

The 3 months correlation between Northfield and Southside is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Northfield Bancorp and Southside Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southside Bancshares, and Northfield Bancorp 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 Northfield Bancorp are associated (or correlated) with Southside Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southside Bancshares, has no effect on the direction of Northfield Bancorp i.e., Northfield Bancorp and Southside Bancshares, go up and down completely randomly.

Pair Corralation between Northfield Bancorp and Southside Bancshares,

Given the investment horizon of 90 days Northfield Bancorp is expected to generate 1.27 times more return on investment than Southside Bancshares,. However, Northfield Bancorp is 1.27 times more volatile than Southside Bancshares,. It trades about 0.08 of its potential returns per unit of risk. Southside Bancshares, is currently generating about 0.04 per unit of risk. If you would invest  1,160  in Northfield Bancorp on September 5, 2024 and sell it today you would earn a total of  166.00  from holding Northfield Bancorp or generate 14.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Northfield Bancorp  vs.  Southside Bancshares,

Northfield Bancorp

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Northfield Bancorp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental drivers, Northfield Bancorp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Southside Bancshares,

Risk-Adjusted Performance

3 of 100

Insignificant

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

Pair Trading with Northfield Bancorp and Southside Bancshares,

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

The idea behind Northfield Bancorp and Southside 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.