Correlation Between CCSB Financial and Killbuck Bancshares
Can any of the company-specific risk be diversified away by investing in both CCSB Financial and Killbuck Bancshares 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 Killbuck Bancshares 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 Killbuck Bancshares, you can compare the effects of market volatilities on CCSB Financial and Killbuck Bancshares 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 Killbuck Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Killbuck Bancshares.
Diversification Opportunities for CCSB Financial and Killbuck Bancshares
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CCSB and Killbuck is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Killbuck Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Killbuck Bancshares 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 Killbuck Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Killbuck Bancshares has no effect on the direction of CCSB Financial i.e., CCSB Financial and Killbuck Bancshares go up and down completely randomly.
Pair Corralation between CCSB Financial and Killbuck Bancshares
Given the investment horizon of 90 days CCSB Financial Corp is expected to generate 0.42 times more return on investment than Killbuck Bancshares. However, CCSB Financial Corp is 2.38 times less risky than Killbuck Bancshares. It trades about -0.24 of its potential returns per unit of risk. Killbuck Bancshares is currently generating about -0.2 per unit of risk. If you would invest 1,215 in CCSB Financial Corp on August 29, 2024 and sell it today you would lose (46.00) from holding CCSB Financial Corp or give up 3.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CCSB Financial Corp vs. Killbuck Bancshares
Performance |
| Timeline |
| CCSB Financial Corp |
| Killbuck Bancshares |
CCSB Financial and Killbuck Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCSB Financial and Killbuck Bancshares
The main advantage of trading using opposite CCSB Financial and Killbuck Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCSB Financial position performs unexpectedly, Killbuck Bancshares 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 Killbuck Bancshares will offset losses from the drop in Killbuck Bancshares' long position.| CCSB Financial vs. Westinghouse Air Brake | CCSB Financial vs. Weibo Corp | CCSB Financial vs. Alaska Air Group | CCSB Financial vs. Nextplat Corp |
| Killbuck Bancshares vs. Invesco High Income | Killbuck Bancshares vs. Blackrock Muniholdings Ny | Killbuck Bancshares vs. Nuveen California Select | Killbuck Bancshares 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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