Correlation Between Banc Of and Cnb Community
Can any of the company-specific risk be diversified away by investing in both Banc Of and Cnb Community 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 Banc Of and Cnb Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banc of California and Cnb Community Bancorp, you can compare the effects of market volatilities on Banc Of and Cnb Community 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 Banc Of with a short position of Cnb Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banc Of and Cnb Community.
Diversification Opportunities for Banc Of and Cnb Community
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banc and Cnb is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Banc of California and Cnb Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnb Community Bancorp and Banc Of 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 Banc of California are associated (or correlated) with Cnb Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnb Community Bancorp has no effect on the direction of Banc Of i.e., Banc Of and Cnb Community go up and down completely randomly.
Pair Corralation between Banc Of and Cnb Community
If you would invest 1,180 in Banc of California on September 14, 2024 and sell it today you would earn a total of 1,293 from holding Banc of California or generate 109.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Banc of California vs. Cnb Community Bancorp
Performance |
| Timeline |
| Banc of California |
| Cnb Community Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Banc Of and Cnb Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banc Of and Cnb Community
The main advantage of trading using opposite Banc Of and Cnb Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banc Of position performs unexpectedly, Cnb Community 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 Cnb Community will offset losses from the drop in Cnb Community's long position.| Banc Of vs. American Eagle Outfitters | Banc Of vs. Silo Pharma | Banc Of vs. Ross Stores | Banc Of vs. United Rentals |
| Cnb Community vs. OptimumBank Holdings | Cnb Community vs. First National Bank | Cnb Community vs. TrustCo Bank Corp | Cnb Community vs. Inter Co Class |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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