Correlation Between CCCB Bancorp and Uwharrie Capital
Can any of the company-specific risk be diversified away by investing in both CCCB Bancorp and Uwharrie Capital 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 CCCB Bancorp and Uwharrie Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCCB Bancorp and Uwharrie Capital Corp, you can compare the effects of market volatilities on CCCB Bancorp and Uwharrie Capital 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 CCCB Bancorp with a short position of Uwharrie Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCCB Bancorp and Uwharrie Capital.
Diversification Opportunities for CCCB Bancorp and Uwharrie Capital
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CCCB and Uwharrie is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding CCCB Bancorp and Uwharrie Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uwharrie Capital Corp and CCCB 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 CCCB Bancorp are associated (or correlated) with Uwharrie Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uwharrie Capital Corp has no effect on the direction of CCCB Bancorp i.e., CCCB Bancorp and Uwharrie Capital go up and down completely randomly.
Pair Corralation between CCCB Bancorp and Uwharrie Capital
Given the investment horizon of 90 days CCCB Bancorp is expected to generate 2.36 times more return on investment than Uwharrie Capital. However, CCCB Bancorp is 2.36 times more volatile than Uwharrie Capital Corp. It trades about 0.04 of its potential returns per unit of risk. Uwharrie Capital Corp is currently generating about 0.1 per unit of risk. If you would invest 525.00 in CCCB Bancorp on September 1, 2024 and sell it today you would earn a total of 55.00 from holding CCCB Bancorp or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
CCCB Bancorp vs. Uwharrie Capital Corp
Performance |
| Timeline |
| CCCB Bancorp |
| Uwharrie Capital Corp |
CCCB Bancorp and Uwharrie Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCCB Bancorp and Uwharrie Capital
The main advantage of trading using opposite CCCB Bancorp and Uwharrie Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCCB Bancorp position performs unexpectedly, Uwharrie Capital 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 Uwharrie Capital will offset losses from the drop in Uwharrie Capital's long position.| CCCB Bancorp vs. Piraeus Bank SA | CCCB Bancorp vs. Turkiye Garanti Bankasi | CCCB Bancorp vs. Delhi Bank Corp | CCCB Bancorp vs. Uwharrie Capital Corp |
| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Positions Ratings 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 |