Correlation Between Security National and National Bankshares
Can any of the company-specific risk be diversified away by investing in both Security National and National Bankshares 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 National and National Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security National Financial and National Bankshares, you can compare the effects of market volatilities on Security National and National Bankshares 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 National with a short position of National Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security National and National Bankshares.
Diversification Opportunities for Security National and National Bankshares
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Security and National is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Security National Financial and National Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bankshares and Security National 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 National Financial are associated (or correlated) with National Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bankshares has no effect on the direction of Security National i.e., Security National and National Bankshares go up and down completely randomly.
Pair Corralation between Security National and National Bankshares
Assuming the 90 days horizon Security National Financial is expected to under-perform the National Bankshares. In addition to that, Security National is 1.04 times more volatile than National Bankshares. It trades about -0.01 of its total potential returns per unit of risk. National Bankshares is currently generating about 0.04 per unit of volatility. If you would invest 2,870 in National Bankshares on August 18, 2025 and sell it today you would earn a total of 127.00 from holding National Bankshares or generate 4.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Security National Financial vs. National Bankshares
Performance |
| Timeline |
| Security National |
| National Bankshares |
Security National and National Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security National and National Bankshares
The main advantage of trading using opposite Security National and National Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security National position performs unexpectedly, National Bankshares 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 National Bankshares will offset losses from the drop in National Bankshares' long position.| Security National vs. First Savings Financial | Security National vs. Greystone Housing Impact | Security National vs. OP Bancorp | Security National vs. Consumer Portfolio Services |
| National Bankshares vs. Eagle Financial Services | National Bankshares vs. Ames National | National Bankshares vs. Mainstreet Bank | National Bankshares vs. Chain Bridge 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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