Correlation Between Oconee Federal and IF Bancorp
Can any of the company-specific risk be diversified away by investing in both Oconee Federal and IF Bancorp 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 IF Bancorp 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 IF Bancorp, you can compare the effects of market volatilities on Oconee Federal and IF Bancorp 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 IF Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oconee Federal and IF Bancorp.
Diversification Opportunities for Oconee Federal and IF Bancorp
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Oconee and IROQ is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Oconee Federal Financial and IF Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IF Bancorp 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 IF Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IF Bancorp has no effect on the direction of Oconee Federal i.e., Oconee Federal and IF Bancorp go up and down completely randomly.
Pair Corralation between Oconee Federal and IF Bancorp
Given the investment horizon of 90 days Oconee Federal Financial is expected to generate 1.82 times more return on investment than IF Bancorp. However, Oconee Federal is 1.82 times more volatile than IF Bancorp. It trades about 0.33 of its potential returns per unit of risk. IF Bancorp is currently generating about 0.15 per unit of risk. If you would invest 1,243 in Oconee Federal Financial on July 20, 2025 and sell it today you would earn a total of 357.00 from holding Oconee Federal Financial or generate 28.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.48% |
| Values | Daily Returns |
Oconee Federal Financial vs. IF Bancorp
Performance |
| Timeline |
| Oconee Federal Financial |
| IF Bancorp |
Oconee Federal and IF Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oconee Federal and IF Bancorp
The main advantage of trading using opposite Oconee Federal and IF Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oconee Federal position performs unexpectedly, IF Bancorp 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 IF Bancorp will offset losses from the drop in IF Bancorp's long position.| Oconee Federal vs. Security Federal | Oconee Federal vs. Bancorp 34 | Oconee Federal vs. F M Bank | Oconee Federal vs. Bank of South |
| IF Bancorp vs. Fifth District Bancorp, | IF Bancorp vs. Bank of the | IF Bancorp vs. First Bancshares | IF Bancorp vs. United Bancorp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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