Correlation Between Avidbank Holdings and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both Avidbank Holdings and CCSB Financial 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 Avidbank Holdings and CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avidbank Holdings and CCSB Financial Corp, you can compare the effects of market volatilities on Avidbank Holdings and CCSB Financial 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 Avidbank Holdings with a short position of CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avidbank Holdings and CCSB Financial.
Diversification Opportunities for Avidbank Holdings and CCSB Financial
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Avidbank and CCSB is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Avidbank Holdings and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp and Avidbank Holdings 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 Avidbank Holdings are associated (or correlated) with CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Avidbank Holdings i.e., Avidbank Holdings and CCSB Financial go up and down completely randomly.
Pair Corralation between Avidbank Holdings and CCSB Financial
Given the investment horizon of 90 days Avidbank Holdings is expected to generate 0.56 times more return on investment than CCSB Financial. However, Avidbank Holdings is 1.78 times less risky than CCSB Financial. It trades about 0.34 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.16 per unit of risk. If you would invest 1,950 in Avidbank Holdings on August 29, 2024 and sell it today you would earn a total of 255.00 from holding Avidbank Holdings or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avidbank Holdings vs. CCSB Financial Corp
Performance |
| Timeline |
| Avidbank Holdings |
| CCSB Financial Corp |
Avidbank Holdings and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avidbank Holdings and CCSB Financial
The main advantage of trading using opposite Avidbank Holdings and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avidbank Holdings position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| Avidbank Holdings vs. Invesco High Income | Avidbank Holdings vs. Blackrock Muniholdings Ny | Avidbank Holdings vs. Nuveen California Select | Avidbank Holdings vs. MFS Investment Grade |
| CCSB Financial vs. Westinghouse Air Brake | CCSB Financial vs. Weibo Corp | CCSB Financial vs. Alaska Air Group | CCSB Financial vs. Nextplat Corp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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