Correlation Between Coastal Carolina and NASB Financial
Can any of the company-specific risk be diversified away by investing in both Coastal Carolina and NASB Financial 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 NASB Financial 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 NASB Financial, you can compare the effects of market volatilities on Coastal Carolina and NASB Financial 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 NASB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coastal Carolina and NASB Financial.
Diversification Opportunities for Coastal Carolina and NASB Financial
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Coastal and NASB is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Coastal Carolina Bancshares and NASB Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NASB Financial 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 NASB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASB Financial has no effect on the direction of Coastal Carolina i.e., Coastal Carolina and NASB Financial go up and down completely randomly.
Pair Corralation between Coastal Carolina and NASB Financial
If you would invest 1,000.00 in Coastal Carolina Bancshares on August 25, 2024 and sell it today you would earn a total of 95.00 from holding Coastal Carolina Bancshares or generate 9.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Coastal Carolina Bancshares vs. NASB Financial
Performance |
| Timeline |
| Coastal Carolina Ban |
| NASB Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Coastal Carolina and NASB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coastal Carolina and NASB Financial
The main advantage of trading using opposite Coastal Carolina and NASB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coastal Carolina position performs unexpectedly, NASB Financial 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 NASB Financial will offset losses from the drop in NASB Financial's long position.| Coastal Carolina vs. Invesco High Income | Coastal Carolina vs. Blackrock Muniholdings Ny | Coastal Carolina vs. MFS Investment Grade | Coastal Carolina vs. Federated Premier Municipal |
| NASB Financial vs. First Bankers Trustshares | NASB Financial vs. Greenville Federal Financial | NASB Financial vs. First Ottawa Bancshares | NASB Financial vs. Coastal Carolina Bancshares |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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