Correlation Between Camden National and Civista Bancshares
Can any of the company-specific risk be diversified away by investing in both Camden National and Civista 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 Camden National and Civista Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camden National and Civista Bancshares, you can compare the effects of market volatilities on Camden National and Civista 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 Camden National with a short position of Civista Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camden National and Civista Bancshares.
Diversification Opportunities for Camden National and Civista Bancshares
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Camden and Civista is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Camden National and Civista Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civista Bancshares and Camden National 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 Camden National are associated (or correlated) with Civista Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civista Bancshares has no effect on the direction of Camden National i.e., Camden National and Civista Bancshares go up and down completely randomly.
Pair Corralation between Camden National and Civista Bancshares
Considering the 90-day investment horizon Camden National is expected to generate 1.03 times less return on investment than Civista Bancshares. In addition to that, Camden National is 1.66 times more volatile than Civista Bancshares. It trades about 0.16 of its total potential returns per unit of risk. Civista Bancshares is currently generating about 0.27 per unit of volatility. If you would invest 2,020 in Civista Bancshares on September 2, 2024 and sell it today you would earn a total of 268.00 from holding Civista Bancshares or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camden National vs. Civista Bancshares
Performance |
| Timeline |
| Camden National |
| Civista Bancshares |
Camden National and Civista Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camden National and Civista Bancshares
The main advantage of trading using opposite Camden National and Civista Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camden National position performs unexpectedly, Civista 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 Civista Bancshares will offset losses from the drop in Civista Bancshares' long position.| Camden National vs. First United | Camden National vs. First Community | Camden National vs. Greene County Bancorp | Camden National vs. Community West Bancshares |
| Civista Bancshares vs. Affinity Bancshares | Civista Bancshares vs. Auburn National Bancorporation | Civista Bancshares vs. BayCom Corp | Civista Bancshares vs. First Community |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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