Correlation Between CNB Financial and SmartFinancial,
Can any of the company-specific risk be diversified away by investing in both CNB Financial and SmartFinancial, 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 CNB Financial and SmartFinancial, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNB Financial and SmartFinancial,, you can compare the effects of market volatilities on CNB Financial and SmartFinancial, 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 CNB Financial with a short position of SmartFinancial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNB Financial and SmartFinancial,.
Diversification Opportunities for CNB Financial and SmartFinancial,
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CNB and SmartFinancial, is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding CNB Financial and SmartFinancial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartFinancial, and CNB 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 CNB Financial are associated (or correlated) with SmartFinancial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartFinancial, has no effect on the direction of CNB Financial i.e., CNB Financial and SmartFinancial, go up and down completely randomly.
Pair Corralation between CNB Financial and SmartFinancial,
Given the investment horizon of 90 days CNB Financial is expected to generate 1.27 times less return on investment than SmartFinancial,. In addition to that, CNB Financial is 1.31 times more volatile than SmartFinancial,. It trades about 0.13 of its total potential returns per unit of risk. SmartFinancial, is currently generating about 0.21 per unit of volatility. If you would invest 3,299 in SmartFinancial, on August 27, 2024 and sell it today you would earn a total of 374.00 from holding SmartFinancial, or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNB Financial vs. SmartFinancial,
Performance |
| Timeline |
| CNB Financial |
| SmartFinancial, |
CNB Financial and SmartFinancial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNB Financial and SmartFinancial,
The main advantage of trading using opposite CNB Financial and SmartFinancial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNB Financial position performs unexpectedly, SmartFinancial, 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 SmartFinancial, will offset losses from the drop in SmartFinancial,'s long position.| CNB Financial vs. Fifth Third Bancorp | CNB Financial vs. Zions Bancorporation | CNB Financial vs. Huntington Bancshares Incorporated | CNB Financial vs. Comerica |
| SmartFinancial, vs. Home Federal Bancorp | SmartFinancial, vs. Lake Shore Bancorp | SmartFinancial, vs. Community West Bancshares | SmartFinancial, vs. First Financial Northwest |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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