Correlation Between BancFirst and Equity Bancshares,

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

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

Diversification Opportunities for BancFirst and Equity Bancshares,

0.98

Correlation Coefficient

BancFirst  Equity Bancshares,

Almost no diversification

The 3 months correlation between BancFirst and Equity is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding BancFirst and Equity Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Bancshares, and BancFirst 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 BancFirst are associated (or correlated) with Equity Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Bancshares, has no effect on the direction of BancFirst i.e., BancFirst and Equity Bancshares, go up and down completely randomly.

Pair Corralation between BancFirst and Equity Bancshares,

Given the investment horizon of 90 days BancFirst is expected to generate 1.26 times more return on investment than Equity Bancshares,. However, BancFirst is 1.26 times more volatile than Equity Bancshares,. It trades about 0.13 of its potential returns per unit of risk. Equity Bancshares, is currently generating about 0.12 per unit of risk. If you would invest  10,426  in BancFirst on September 13, 2024 and sell it today you would earn a total of  2,237  from holding BancFirst or generate 21.46% return on investment over 90 days.

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

BancFirst  vs.  Equity Bancshares,

BancFirst

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BancFirst are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, BancFirst reported solid returns over the last few months and may actually be approaching a breakup point.

Equity Bancshares,

Risk-Adjusted Performance

9 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Equity Bancshares, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, Equity Bancshares, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BancFirst and Equity Bancshares,

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

The idea behind BancFirst and Equity 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.