Correlation Between Commercial National and Sturgis Bancorp
Can any of the company-specific risk be diversified away by investing in both Commercial National and Sturgis 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 Commercial National and Sturgis Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial National Financial and Sturgis Bancorp, you can compare the effects of market volatilities on Commercial National and Sturgis 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 Commercial National with a short position of Sturgis Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial National and Sturgis Bancorp.
Diversification Opportunities for Commercial National and Sturgis Bancorp
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Commercial and Sturgis is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Commercial National Financial and Sturgis Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sturgis Bancorp and Commercial National 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 Commercial National Financial are associated (or correlated) with Sturgis Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sturgis Bancorp has no effect on the direction of Commercial National i.e., Commercial National and Sturgis Bancorp go up and down completely randomly.
Pair Corralation between Commercial National and Sturgis Bancorp
If you would invest 895.00 in Commercial National Financial on August 29, 2024 and sell it today you would earn a total of 55.00 from holding Commercial National Financial or generate 6.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Commercial National Financial vs. Sturgis Bancorp
Performance |
| Timeline |
| Commercial National |
| Sturgis Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Commercial National and Sturgis Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial National and Sturgis Bancorp
The main advantage of trading using opposite Commercial National and Sturgis Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial National position performs unexpectedly, Sturgis 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 Sturgis Bancorp will offset losses from the drop in Sturgis Bancorp's long position.| Commercial National vs. Eastern Michigan Financial | Commercial National vs. Mifflinburg Bancorp | Commercial National vs. Apollo Bancorp | Commercial National vs. Community Bankers |
| Sturgis Bancorp vs. FS Bancorp | Sturgis Bancorp vs. Eastern Michigan Financial | Sturgis Bancorp vs. Grand River Commerce | Sturgis Bancorp vs. Bank of Botetourt |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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