Correlation Between CCFNB Bancorp and First IC
Can any of the company-specific risk be diversified away by investing in both CCFNB Bancorp and First IC 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 First IC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCFNB Bancorp and First IC, you can compare the effects of market volatilities on CCFNB Bancorp and First IC 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 First IC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCFNB Bancorp and First IC.
Diversification Opportunities for CCFNB Bancorp and First IC
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CCFNB and First is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding CCFNB Bancorp and First IC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First IC 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 First IC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First IC has no effect on the direction of CCFNB Bancorp i.e., CCFNB Bancorp and First IC go up and down completely randomly.
Pair Corralation between CCFNB Bancorp and First IC
Given the investment horizon of 90 days CCFNB Bancorp is expected to generate 8.17 times more return on investment than First IC. However, CCFNB Bancorp is 8.17 times more volatile than First IC. It trades about 0.16 of its potential returns per unit of risk. First IC is currently generating about -0.21 per unit of risk. If you would invest 3,405 in CCFNB Bancorp on August 29, 2024 and sell it today you would earn a total of 242.00 from holding CCFNB Bancorp or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
CCFNB Bancorp vs. First IC
Performance |
| Timeline |
| CCFNB Bancorp |
| First IC |
CCFNB Bancorp and First IC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCFNB Bancorp and First IC
The main advantage of trading using opposite CCFNB Bancorp and First IC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCFNB Bancorp position performs unexpectedly, First IC 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 First IC will offset losses from the drop in First IC's long position.| CCFNB Bancorp vs. Susquehanna Community Financial | CCFNB Bancorp vs. Mifflinburg Bancorp | CCFNB Bancorp vs. Woodlands Financial Services | CCFNB Bancorp vs. Penns Woods Bancorp |
| First IC vs. CCFNB Bancorp | First IC vs. Glen Burnie Bancorp | First IC vs. Main Street Financial | First IC vs. Enterprise Financial Services |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |