Correlation Between CCSB Financial and Bank of Utica
Can any of the company-specific risk be diversified away by investing in both CCSB Financial and Bank of Utica 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 Bank of Utica 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 Bank of Utica, you can compare the effects of market volatilities on CCSB Financial and Bank of Utica 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 Bank of Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Bank of Utica.
Diversification Opportunities for CCSB Financial and Bank of Utica
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CCSB and Bank is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Bank of Utica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Utica 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 Bank of Utica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Utica has no effect on the direction of CCSB Financial i.e., CCSB Financial and Bank of Utica go up and down completely randomly.
Pair Corralation between CCSB Financial and Bank of Utica
Given the investment horizon of 90 days CCSB Financial Corp is expected to under-perform the Bank of Utica. But the pink sheet apears to be less risky and, when comparing its historical volatility, CCSB Financial Corp is 1.5 times less risky than Bank of Utica. The pink sheet trades about -0.24 of its potential returns per unit of risk. The Bank of Utica is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 45,000 in Bank of Utica on August 29, 2024 and sell it today you would earn a total of 3,800 from holding Bank of Utica or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCSB Financial Corp vs. Bank of Utica
Performance |
| Timeline |
| CCSB Financial Corp |
| Bank of Utica |
CCSB Financial and Bank of Utica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCSB Financial and Bank of Utica
The main advantage of trading using opposite CCSB Financial and Bank of Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCSB Financial position performs unexpectedly, Bank of Utica 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 Bank of Utica will offset losses from the drop in Bank of Utica's long position.| CCSB Financial vs. Invesco High Income | CCSB Financial vs. Blackrock Muniholdings Ny | CCSB Financial vs. MFS Investment Grade | CCSB Financial 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |