Correlation Between TFS Financial and SouthState
Can any of the company-specific risk be diversified away by investing in both TFS Financial and SouthState 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 TFS Financial and SouthState into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TFS Financial and SouthState, you can compare the effects of market volatilities on TFS Financial and SouthState 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 TFS Financial with a short position of SouthState. Check out your portfolio center. Please also check ongoing floating volatility patterns of TFS Financial and SouthState.
Diversification Opportunities for TFS Financial and SouthState
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TFS and SouthState is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding TFS Financial and SouthState in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SouthState and TFS Financial 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 TFS Financial are associated (or correlated) with SouthState. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SouthState has no effect on the direction of TFS Financial i.e., TFS Financial and SouthState go up and down completely randomly.
Pair Corralation between TFS Financial and SouthState
Given the investment horizon of 90 days TFS Financial is expected to generate 0.86 times more return on investment than SouthState. However, TFS Financial is 1.17 times less risky than SouthState. It trades about 0.07 of its potential returns per unit of risk. SouthState is currently generating about -0.05 per unit of risk. If you would invest 1,311 in TFS Financial on September 12, 2025 and sell it today you would earn a total of 80.00 from holding TFS Financial or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TFS Financial vs. SouthState
Performance |
| Timeline |
| TFS Financial |
| SouthState |
TFS Financial and SouthState Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TFS Financial and SouthState
The main advantage of trading using opposite TFS Financial and SouthState positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TFS Financial position performs unexpectedly, SouthState 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 SouthState will offset losses from the drop in SouthState's long position.| TFS Financial vs. Texas Capital Bancshares | TFS Financial vs. Fulton Financial | TFS Financial vs. The Bancorp | TFS Financial vs. MT Bank |
| SouthState vs. Comerica Incorporated | SouthState vs. Webster Financial | SouthState vs. First Horizon National | SouthState vs. UMB Financial |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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