Correlation Between Baraboo Bancorporation and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both Baraboo Bancorporation 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 Baraboo Bancorporation and CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baraboo Bancorporation and CCSB Financial Corp, you can compare the effects of market volatilities on Baraboo Bancorporation 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 Baraboo Bancorporation with a short position of CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baraboo Bancorporation and CCSB Financial.
Diversification Opportunities for Baraboo Bancorporation and CCSB Financial
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Baraboo and CCSB is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Baraboo Bancorp. 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 Baraboo Bancorporation 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 Baraboo Bancorporation 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 Baraboo Bancorporation i.e., Baraboo Bancorporation and CCSB Financial go up and down completely randomly.
Pair Corralation between Baraboo Bancorporation and CCSB Financial
Given the investment horizon of 90 days Baraboo Bancorporation is expected to generate 1.0 times more return on investment than CCSB Financial. However, Baraboo Bancorporation is 1.0 times more volatile than CCSB Financial Corp. It trades about 0.02 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.02 per unit of risk. If you would invest 302.00 in Baraboo Bancorporation on September 2, 2024 and sell it today you would earn a total of 28.00 from holding Baraboo Bancorporation or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.45% |
| Values | Daily Returns |
Baraboo Bancorp. vs. CCSB Financial Corp
Performance |
| Timeline |
| Baraboo Bancorporation |
| CCSB Financial Corp |
Baraboo Bancorporation and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baraboo Bancorporation and CCSB Financial
The main advantage of trading using opposite Baraboo Bancorporation and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baraboo Bancorporation 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.| Baraboo Bancorporation vs. Andover Bancorp | Baraboo Bancorporation vs. Aozora Bank Ltd | Baraboo Bancorporation vs. Israel Discount Bank | Baraboo Bancorporation vs. Schweizerische Nationalbank |
| CCSB Financial vs. HUMANA INC | CCSB Financial vs. SCOR PK | CCSB Financial vs. Aquagold International | CCSB Financial vs. Thrivent High Yield |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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