Correlation Between CBB Bancorp and US Metro
Can any of the company-specific risk be diversified away by investing in both CBB Bancorp and US Metro 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 CBB Bancorp and US Metro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBB Bancorp and US Metro Bancorp, you can compare the effects of market volatilities on CBB Bancorp and US Metro 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 CBB Bancorp with a short position of US Metro. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBB Bancorp and US Metro.
Diversification Opportunities for CBB Bancorp and US Metro
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CBB and USMT is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding CBB Bancorp and US Metro Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Metro Bancorp and CBB Bancorp 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 CBB Bancorp are associated (or correlated) with US Metro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Metro Bancorp has no effect on the direction of CBB Bancorp i.e., CBB Bancorp and US Metro go up and down completely randomly.
Pair Corralation between CBB Bancorp and US Metro
If you would invest 385.00 in US Metro Bancorp on August 24, 2024 and sell it today you would earn a total of 0.00 from holding US Metro Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBB Bancorp vs. US Metro Bancorp
Performance |
| Timeline |
| CBB Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| US Metro Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CBB Bancorp and US Metro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBB Bancorp and US Metro
The main advantage of trading using opposite CBB Bancorp and US Metro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBB Bancorp position performs unexpectedly, US Metro 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 US Metro will offset losses from the drop in US Metro's long position.| CBB Bancorp vs. CIB Marine Bancshares | CBB Bancorp vs. United Bancorporation of | CBB Bancorp vs. U I Financial | CBB Bancorp vs. Heartland Banccorp |
| US Metro vs. CMUV Bancorp | US Metro vs. Pioneer Bankcorp | US Metro vs. Summit Bancshares | US Metro vs. Liberty Northwest Bancorp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |