Correlation Between Oconee Federal and Triumph Financial

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

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

Diversification Opportunities for Oconee Federal and Triumph Financial

0.0

Correlation Coefficient

Oconee Federal  Triumph Financial

Pay attention - limited upside

The 3 months correlation between Oconee and Triumph is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oconee Federal Financial and Triumph Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Financial and Oconee Federal 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 Oconee Federal Financial are associated (or correlated) with Triumph Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Financial has no effect on the direction of Oconee Federal i.e., Oconee Federal and Triumph Financial go up and down completely randomly.

Pair Corralation between Oconee Federal and Triumph Financial

If you would invest (100.00) in Oconee Federal Financial on December 4, 2024 and sell it today you would earn a total of  100.00  from holding Oconee Federal Financial or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Oconee Federal Financial  vs.  Triumph Financial

Oconee Federal Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Oconee Federal Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Oconee Federal is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Triumph Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Triumph Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Oconee Federal and Triumph Financial

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

The idea behind Oconee Federal Financial and Triumph Financial 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.