Correlation Between CBOA Financial and Home Federal
Can any of the company-specific risk be diversified away by investing in both CBOA Financial and Home Federal 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 CBOA Financial and Home Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBOA Financial and Home Federal Bancorp, you can compare the effects of market volatilities on CBOA Financial and Home Federal 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 CBOA Financial with a short position of Home Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBOA Financial and Home Federal.
Diversification Opportunities for CBOA Financial and Home Federal
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CBOA and Home is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding CBOA Financial and Home Federal Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Federal Bancorp and CBOA 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 CBOA Financial are associated (or correlated) with Home Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Federal Bancorp has no effect on the direction of CBOA Financial i.e., CBOA Financial and Home Federal go up and down completely randomly.
Pair Corralation between CBOA Financial and Home Federal
If you would invest 243.00 in CBOA Financial on August 29, 2024 and sell it today you would earn a total of 0.00 from holding CBOA Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CBOA Financial vs. Home Federal Bancorp
Performance |
| Timeline |
| CBOA Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Home Federal Bancorp |
CBOA Financial and Home Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBOA Financial and Home Federal
The main advantage of trading using opposite CBOA Financial and Home Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBOA Financial position performs unexpectedly, Home Federal 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 Home Federal will offset losses from the drop in Home Federal's long position.| CBOA Financial vs. Pioneer Bankcorp | CBOA Financial vs. Liberty Northwest Bancorp | CBOA Financial vs. First Community | CBOA Financial vs. Coeur dAlene 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |