Correlation Between Amalgamated Bank and Southside Bancshares,

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

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

Diversification Opportunities for Amalgamated Bank and Southside Bancshares,

0.83

Correlation Coefficient

Amalgamated Bank  Southside Bancshares,

Very poor diversification

The 3 months correlation between Amalgamated and Southside is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Amalgamated Bank and Southside Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southside Bancshares, and Amalgamated 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 Amalgamated Bank are associated (or correlated) with Southside Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southside Bancshares, has no effect on the direction of Amalgamated Bank i.e., Amalgamated Bank and Southside Bancshares, go up and down completely randomly.

Pair Corralation between Amalgamated Bank and Southside Bancshares,

Given the investment horizon of 90 days Amalgamated Bank is expected to generate 1.16 times more return on investment than Southside Bancshares,. However, Amalgamated Bank is 1.16 times more volatile than Southside Bancshares,. It trades about -0.02 of its potential returns per unit of risk. Southside Bancshares, is currently generating about -0.08 per unit of risk. If you would invest  2,949  in Amalgamated Bank on July 29, 2025 and sell it today you would lose (117.00) from holding Amalgamated Bank or give up 3.97% of portfolio value over 90 days.

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

Amalgamated Bank  vs.  Southside Bancshares,

Amalgamated Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days Amalgamated Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Amalgamated Bank is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Southside Bancshares,

Risk-Adjusted Performance

Weakest

Over the last 90 days Southside Bancshares, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Amalgamated Bank and Southside Bancshares,

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

The idea behind Amalgamated Bank and Southside 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.