Correlation Between Coastal Carolina and Apollo Bancorp
Can any of the company-specific risk be diversified away by investing in both Coastal Carolina and Apollo 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 Coastal Carolina and Apollo Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coastal Carolina Bancshares and Apollo Bancorp, you can compare the effects of market volatilities on Coastal Carolina and Apollo 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 Coastal Carolina with a short position of Apollo Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coastal Carolina and Apollo Bancorp.
Diversification Opportunities for Coastal Carolina and Apollo Bancorp
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coastal and Apollo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Coastal Carolina Bancshares and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and Coastal Carolina 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 Coastal Carolina Bancshares are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Coastal Carolina i.e., Coastal Carolina and Apollo Bancorp go up and down completely randomly.
Pair Corralation between Coastal Carolina and Apollo Bancorp
Given the investment horizon of 90 days Coastal Carolina Bancshares is expected to generate 0.43 times more return on investment than Apollo Bancorp. However, Coastal Carolina Bancshares is 2.3 times less risky than Apollo Bancorp. It trades about 0.07 of its potential returns per unit of risk. Apollo Bancorp is currently generating about 0.01 per unit of risk. If you would invest 935.00 in Coastal Carolina Bancshares on August 29, 2024 and sell it today you would earn a total of 166.00 from holding Coastal Carolina Bancshares or generate 17.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 53.21% |
| Values | Daily Returns |
Coastal Carolina Bancshares vs. Apollo Bancorp
Performance |
| Timeline |
| Coastal Carolina Ban |
| Apollo Bancorp |
Coastal Carolina and Apollo Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coastal Carolina and Apollo Bancorp
The main advantage of trading using opposite Coastal Carolina and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coastal Carolina position performs unexpectedly, Apollo 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 Apollo Bancorp will offset losses from the drop in Apollo Bancorp's long position.| Coastal Carolina vs. First Bankers Trustshares | Coastal Carolina vs. Greenville Federal Financial | Coastal Carolina vs. First Ottawa Bancshares | Coastal Carolina vs. Citizens Bancorp Investment |
| Apollo Bancorp vs. The Farmers Bank | Apollo Bancorp vs. Bank of Utica | Apollo Bancorp vs. Delhi Bank Corp | Apollo Bancorp vs. CCSB Financial 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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