Correlation Between CCSB Financial and Lewis Clark
Can any of the company-specific risk be diversified away by investing in both CCSB Financial and Lewis Clark 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 Lewis Clark 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 Lewis Clark Bancorp, you can compare the effects of market volatilities on CCSB Financial and Lewis Clark 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 Lewis Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Lewis Clark.
Diversification Opportunities for CCSB Financial and Lewis Clark
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CCSB and Lewis is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp 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 Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of CCSB Financial i.e., CCSB Financial and Lewis Clark go up and down completely randomly.
Pair Corralation between CCSB Financial and Lewis Clark
Given the investment horizon of 90 days CCSB Financial is expected to generate 24.58 times less return on investment than Lewis Clark. In addition to that, CCSB Financial is 2.37 times more volatile than Lewis Clark Bancorp. It trades about 0.0 of its total potential returns per unit of risk. Lewis Clark Bancorp is currently generating about 0.25 per unit of volatility. If you would invest 2,100 in Lewis Clark Bancorp on September 2, 2024 and sell it today you would earn a total of 900.00 from holding Lewis Clark Bancorp or generate 42.86% 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. Lewis Clark Bancorp
Performance |
| Timeline |
| CCSB Financial Corp |
| Lewis Clark Bancorp |
CCSB Financial and Lewis Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCSB Financial and Lewis Clark
The main advantage of trading using opposite CCSB Financial and Lewis Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCSB Financial position performs unexpectedly, Lewis Clark 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 Lewis Clark will offset losses from the drop in Lewis Clark's long position.| CCSB Financial vs. HUMANA INC | CCSB Financial vs. SCOR PK | CCSB Financial vs. Aquagold International | CCSB Financial vs. Thrivent High Yield |
| Lewis Clark vs. China Clean Energy | Lewis Clark vs. Titan Machinery | Lewis Clark vs. Tradeweb Markets | Lewis Clark vs. Simon Property Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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