Correlation Between CB Financial and Taylor Calvin
Can any of the company-specific risk be diversified away by investing in both CB Financial and Taylor Calvin 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 CB Financial and Taylor Calvin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CB Financial Services and Taylor Calvin B, you can compare the effects of market volatilities on CB Financial and Taylor Calvin 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 CB Financial with a short position of Taylor Calvin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CB Financial and Taylor Calvin.
Diversification Opportunities for CB Financial and Taylor Calvin
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CBFV and Taylor is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CB Financial Services and Taylor Calvin B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Calvin B and CB Financial 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 CB Financial Services are associated (or correlated) with Taylor Calvin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Calvin B has no effect on the direction of CB Financial i.e., CB Financial and Taylor Calvin go up and down completely randomly.
Pair Corralation between CB Financial and Taylor Calvin
Given the investment horizon of 90 days CB Financial Services is expected to generate 0.9 times more return on investment than Taylor Calvin. However, CB Financial Services is 1.12 times less risky than Taylor Calvin. It trades about 0.18 of its potential returns per unit of risk. Taylor Calvin B is currently generating about -0.08 per unit of risk. If you would invest 2,772 in CB Financial Services on August 29, 2024 and sell it today you would earn a total of 318.00 from holding CB Financial Services or generate 11.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
CB Financial Services vs. Taylor Calvin B
Performance |
| Timeline |
| CB Financial Services |
| Taylor Calvin B |
CB Financial and Taylor Calvin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CB Financial and Taylor Calvin
The main advantage of trading using opposite CB Financial and Taylor Calvin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CB Financial position performs unexpectedly, Taylor Calvin 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 Taylor Calvin will offset losses from the drop in Taylor Calvin's long position.| CB Financial vs. Magyar Bancorp | CB Financial vs. Home Federal Bancorp | CB Financial vs. Community West Bancshares | CB Financial vs. Lake Shore Bancorp |
| Taylor Calvin vs. Invesco High Income | Taylor Calvin vs. Blackrock Muniholdings Ny | Taylor Calvin vs. Nuveen California Select | Taylor Calvin vs. MFS Investment Grade |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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