Correlation Between CCSB Financial and Avidbank Holdings
Can any of the company-specific risk be diversified away by investing in both CCSB Financial and Avidbank Holdings 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 CCSB Financial and Avidbank Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCSB Financial Corp and Avidbank Holdings, you can compare the effects of market volatilities on CCSB Financial and Avidbank Holdings 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 CCSB Financial with a short position of Avidbank Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Avidbank Holdings.
Diversification Opportunities for CCSB Financial and Avidbank Holdings
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CCSB and Avidbank is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Avidbank Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avidbank Holdings and CCSB 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 CCSB Financial Corp are associated (or correlated) with Avidbank Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avidbank Holdings has no effect on the direction of CCSB Financial i.e., CCSB Financial and Avidbank Holdings go up and down completely randomly.
Pair Corralation between CCSB Financial and Avidbank Holdings
Given the investment horizon of 90 days CCSB Financial Corp is expected to under-perform the Avidbank Holdings. In addition to that, CCSB Financial is 2.45 times more volatile than Avidbank Holdings. It trades about -0.01 of its total potential returns per unit of risk. Avidbank Holdings is currently generating about 0.12 per unit of volatility. If you would invest 1,380 in Avidbank Holdings on August 26, 2024 and sell it today you would earn a total of 805.00 from holding Avidbank Holdings or generate 58.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCSB Financial Corp vs. Avidbank Holdings
Performance |
| Timeline |
| CCSB Financial Corp |
| Avidbank Holdings |
CCSB Financial and Avidbank Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCSB Financial and Avidbank Holdings
The main advantage of trading using opposite CCSB Financial and Avidbank Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCSB Financial position performs unexpectedly, Avidbank Holdings 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 Avidbank Holdings will offset losses from the drop in Avidbank Holdings' long position.| CCSB Financial vs. Asbury Automotive Group | CCSB Financial vs. Kite Realty Group | CCSB Financial vs. Grocery Outlet Holding | CCSB Financial vs. Corporacion America Airports |
| Avidbank Holdings vs. Invesco High Income | Avidbank Holdings vs. Blackrock Muniholdings Ny | Avidbank Holdings vs. MFS Investment Grade | Avidbank Holdings vs. Federated Premier Municipal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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