Correlation Between CrossFirst Bankshares and CF Bankshares
Can any of the company-specific risk be diversified away by investing in both CrossFirst Bankshares and CF Bankshares 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 CrossFirst Bankshares and CF Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CrossFirst Bankshares and CF Bankshares, you can compare the effects of market volatilities on CrossFirst Bankshares and CF Bankshares 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 CrossFirst Bankshares with a short position of CF Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of CrossFirst Bankshares and CF Bankshares.
Diversification Opportunities for CrossFirst Bankshares and CF Bankshares
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between CrossFirst and CFBK is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CrossFirst Bankshares and CF Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Bankshares and CrossFirst Bankshares 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 CrossFirst Bankshares are associated (or correlated) with CF Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Bankshares has no effect on the direction of CrossFirst Bankshares i.e., CrossFirst Bankshares and CF Bankshares go up and down completely randomly.
Pair Corralation between CrossFirst Bankshares and CF Bankshares
Considering the 90-day investment horizon CrossFirst Bankshares is expected to generate 1.11 times less return on investment than CF Bankshares. In addition to that, CrossFirst Bankshares is 1.32 times more volatile than CF Bankshares. It trades about 0.14 of its total potential returns per unit of risk. CF Bankshares is currently generating about 0.2 per unit of volatility. If you would invest 2,492 in CF Bankshares on August 24, 2024 and sell it today you would earn a total of 303.00 from holding CF Bankshares or generate 12.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CrossFirst Bankshares vs. CF Bankshares
Performance |
| Timeline |
| CrossFirst Bankshares |
| CF Bankshares |
CrossFirst Bankshares and CF Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CrossFirst Bankshares and CF Bankshares
The main advantage of trading using opposite CrossFirst Bankshares and CF Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CrossFirst Bankshares position performs unexpectedly, CF Bankshares 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 CF Bankshares will offset losses from the drop in CF Bankshares' long position.| CrossFirst Bankshares vs. Home Bancorp | CrossFirst Bankshares vs. Great Southern Bancorp | CrossFirst Bankshares vs. Finward Bancorp | CrossFirst Bankshares vs. Community West Bancshares |
| CF Bankshares vs. Banco Bradesco SA | CF Bankshares vs. Itau Unibanco Banco | CF Bankshares vs. Banco Santander Brasil | CF Bankshares vs. Western Alliance Bancorporation |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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