Correlation Between CCSB Financial and Plumas Bancorp
Can any of the company-specific risk be diversified away by investing in both CCSB Financial and Plumas Bancorp 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 Plumas Bancorp 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 Plumas Bancorp, you can compare the effects of market volatilities on CCSB Financial and Plumas Bancorp 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 Plumas Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Plumas Bancorp.
Diversification Opportunities for CCSB Financial and Plumas Bancorp
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CCSB and Plumas is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Plumas Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plumas 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 Plumas Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plumas Bancorp has no effect on the direction of CCSB Financial i.e., CCSB Financial and Plumas Bancorp go up and down completely randomly.
Pair Corralation between CCSB Financial and Plumas Bancorp
Given the investment horizon of 90 days CCSB Financial Corp is expected to under-perform the Plumas Bancorp. 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 Plumas Bancorp. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Plumas Bancorp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 4,554 in Plumas Bancorp on September 13, 2024 and sell it today you would earn a total of 331.00 from holding Plumas Bancorp or generate 7.27% 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. Plumas Bancorp
Performance |
| Timeline |
| CCSB Financial Corp |
| Plumas Bancorp |
CCSB Financial and Plumas Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCSB Financial and Plumas Bancorp
The main advantage of trading using opposite CCSB Financial and Plumas Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCSB Financial position performs unexpectedly, Plumas Bancorp 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 Plumas Bancorp will offset losses from the drop in Plumas Bancorp's long position.| CCSB Financial vs. Weibo Corp | CCSB Financial vs. Procter Gamble | CCSB Financial vs. Integral Ad Science | CCSB Financial vs. Toro Co |
| Plumas Bancorp vs. Comerica | Plumas Bancorp vs. Truist Financial Corp | Plumas Bancorp vs. Fifth Third Bancorp | Plumas Bancorp vs. Zions Bancorporation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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