Correlation Between CCSB Financial and Summit Bancshares
Can any of the company-specific risk be diversified away by investing in both CCSB Financial and Summit 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 Summit 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 Summit Bancshares, you can compare the effects of market volatilities on CCSB Financial and Summit 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 Summit Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Summit Bancshares.
Diversification Opportunities for CCSB Financial and Summit Bancshares
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CCSB and Summit is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Summit Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit 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 Summit Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Bancshares has no effect on the direction of CCSB Financial i.e., CCSB Financial and Summit Bancshares go up and down completely randomly.
Pair Corralation between CCSB Financial and Summit Bancshares
Given the investment horizon of 90 days CCSB Financial Corp is expected to under-perform the Summit Bancshares. But the pink sheet apears to be less risky and, when comparing its historical volatility, CCSB Financial Corp is 1.45 times less risky than Summit Bancshares. The pink sheet trades about -0.11 of its potential returns per unit of risk. The Summit Bancshares is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 4,313 in Summit Bancshares on September 1, 2024 and sell it today you would earn a total of 74.00 from holding Summit Bancshares or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
CCSB Financial Corp vs. Summit Bancshares
Performance |
| Timeline |
| CCSB Financial Corp |
| Summit Bancshares |
CCSB Financial and Summit Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCSB Financial and Summit Bancshares
The main advantage of trading using opposite CCSB Financial and Summit Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCSB Financial position performs unexpectedly, Summit 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 Summit Bancshares will offset losses from the drop in Summit Bancshares' long position.| CCSB Financial vs. RCI Hospitality Holdings | CCSB Financial vs. SL Green Realty | CCSB Financial vs. JBG SMITH Properties | CCSB Financial vs. Addus HomeCare |
| Summit Bancshares vs. Piraeus Bank SA | Summit Bancshares vs. Turkiye Garanti Bankasi | Summit Bancshares vs. Delhi Bank Corp | Summit Bancshares vs. Uwharrie Capital Corp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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