Correlation Between Oconee Federal and Third Coast

Can any of the company-specific risk be diversified away by investing in both Oconee Federal and Third Coast 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 Third Coast 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 Third Coast Bancshares,, you can compare the effects of market volatilities on Oconee Federal and Third Coast 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 Third Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oconee Federal and Third Coast.

Diversification Opportunities for Oconee Federal and Third Coast

0.54

Correlation Coefficient

Oconee Federal  Third Coast

Very weak diversification

The 3 months correlation between Oconee and Third is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Oconee Federal Financial and Third Coast Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Third Coast Bancshares, 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 Third Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Third Coast Bancshares, has no effect on the direction of Oconee Federal i.e., Oconee Federal and Third Coast go up and down completely randomly.

Pair Corralation between Oconee Federal and Third Coast

Given the investment horizon of 90 days Oconee Federal Financial is expected to generate 0.77 times more return on investment than Third Coast. However, Oconee Federal Financial is 1.3 times less risky than Third Coast. It trades about 0.33 of its potential returns per unit of risk. Third Coast Bancshares, is currently generating about 0.07 per unit of risk. If you would invest  1,225  in Oconee Federal Financial on July 6, 2025 and sell it today you would earn a total of  305.00  from holding Oconee Federal Financial or generate 24.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	80.0%
Values	Daily Returns

Oconee Federal Financial  vs.  Third Coast Bancshares,

Oconee Federal Financial

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oconee Federal Financial are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting technical and fundamental indicators, Oconee Federal exhibited solid returns over the last few months and may actually be approaching a breakup point.

Third Coast Bancshares,

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Third Coast Bancshares, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental drivers, Third Coast may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Oconee Federal and Third Coast

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

The idea behind Oconee Federal Financial and Third Coast 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.

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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.