Correlation Between Security Bank and House Of
Can any of the company-specific risk be diversified away by investing in both Security Bank and House Of 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 Security Bank and House Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security Bank Corp and House of Investments, you can compare the effects of market volatilities on Security Bank and House Of 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 Security Bank with a short position of House Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security Bank and House Of.
Diversification Opportunities for Security Bank and House Of
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Security and House is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Security Bank Corp and House of Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on House of Investments and Security Bank 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 Security Bank Corp are associated (or correlated) with House Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of House of Investments has no effect on the direction of Security Bank i.e., Security Bank and House Of go up and down completely randomly.
Pair Corralation between Security Bank and House Of
Assuming the 90 days trading horizon Security Bank Corp is expected to under-perform the House Of. But the stock apears to be less risky and, when comparing its historical volatility, Security Bank Corp is 1.56 times less risky than House Of. The stock trades about -0.14 of its potential returns per unit of risk. The House of Investments is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 350.00 in House of Investments on December 3, 2024 and sell it today you would lose (8.00) from holding House of Investments or give up 2.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 50.85% |
Values | Daily Returns |
Security Bank Corp vs. House of Investments
Performance |
Timeline |
Security Bank Corp |
House of Investments |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Security Bank and House Of Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Security Bank and House Of
The main advantage of trading using opposite Security Bank and House Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security Bank position performs unexpectedly, House Of 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 House Of will offset losses from the drop in House Of's long position.Security Bank vs. Robinsons Retail Holdings | Security Bank vs. Apex Mining Co | Security Bank vs. Lepanto Consolidated Mining | Security Bank vs. Metro Retail Stores |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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