Correlation Between Camden National and Greene County
Can any of the company-specific risk be diversified away by investing in both Camden National and Greene County 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 Greene County into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Camden National and Greene County Bancorp, you can compare the effects of market volatilities on Camden National and Greene County 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 Greene County. Check out your portfolio center. Please also check ongoing floating volatility patterns of Camden National and Greene County.
Diversification Opportunities for Camden National and Greene County
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Camden and Greene is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Camden National and Greene County Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greene County Bancorp 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 Greene County. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greene County Bancorp has no effect on the direction of Camden National i.e., Camden National and Greene County go up and down completely randomly.
Pair Corralation between Camden National and Greene County
Considering the 90-day investment horizon Camden National is expected to generate 0.73 times more return on investment than Greene County. However, Camden National is 1.38 times less risky than Greene County. It trades about 0.16 of its potential returns per unit of risk. Greene County Bancorp is currently generating about 0.1 per unit of risk. If you would invest 4,208 in Camden National on September 2, 2024 and sell it today you would earn a total of 503.00 from holding Camden National or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Camden National vs. Greene County Bancorp
Performance |
| Timeline |
| Camden National |
| Greene County Bancorp |
Camden National and Greene County Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Camden National and Greene County
The main advantage of trading using opposite Camden National and Greene County positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Camden National position performs unexpectedly, Greene County 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 Greene County will offset losses from the drop in Greene County's long position.| Camden National vs. First United | Camden National vs. First Community | Camden National vs. Greene County Bancorp | Camden National vs. Community West Bancshares |
| Greene County vs. Affinity Bancshares | Greene County vs. Auburn National Bancorporation | Greene County vs. BayCom Corp | Greene County 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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