Correlation Between CCFNB Bancorp and Community First
Can any of the company-specific risk be diversified away by investing in both CCFNB Bancorp and Community First 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 CCFNB Bancorp and Community First into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCFNB Bancorp and Community First Bancorporation, you can compare the effects of market volatilities on CCFNB Bancorp and Community First 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 CCFNB Bancorp with a short position of Community First. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCFNB Bancorp and Community First.
Diversification Opportunities for CCFNB Bancorp and Community First
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CCFNB and Community is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding CCFNB Bancorp and Community First Bancorp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Community First Banc and CCFNB Bancorp 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 CCFNB Bancorp are associated (or correlated) with Community First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Community First Banc has no effect on the direction of CCFNB Bancorp i.e., CCFNB Bancorp and Community First go up and down completely randomly.
Pair Corralation between CCFNB Bancorp and Community First
Given the investment horizon of 90 days CCFNB Bancorp is expected to generate 4.41 times less return on investment than Community First. In addition to that, CCFNB Bancorp is 1.12 times more volatile than Community First Bancorporation. It trades about 0.01 of its total potential returns per unit of risk. Community First Bancorporation is currently generating about 0.05 per unit of volatility. If you would invest 622.00 in Community First Bancorporation on September 12, 2024 and sell it today you would earn a total of 178.00 from holding Community First Bancorporation or generate 28.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.93% |
| Values | Daily Returns |
CCFNB Bancorp vs. Community First Bancorp.
Performance |
| Timeline |
| CCFNB Bancorp |
| Community First Banc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CCFNB Bancorp and Community First Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCFNB Bancorp and Community First
The main advantage of trading using opposite CCFNB Bancorp and Community First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCFNB Bancorp position performs unexpectedly, Community First 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 Community First will offset losses from the drop in Community First's long position.| CCFNB Bancorp vs. Freedom Bank of | CCFNB Bancorp vs. HUMANA INC | CCFNB Bancorp vs. Barloworld Ltd ADR | CCFNB Bancorp vs. Morningstar Unconstrained Allocation |
| Community First vs. Citizens Financial Corp | Community First vs. Croghan Bancshares | Community First vs. Commercial National Financial | Community First vs. CCFNB Bancorp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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