Correlation Between Croghan Bancshares and ATRenew
Can any of the company-specific risk be diversified away by investing in both Croghan Bancshares and ATRenew 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 Croghan Bancshares and ATRenew into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Croghan Bancshares and ATRenew Inc DRC, you can compare the effects of market volatilities on Croghan Bancshares and ATRenew 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 Croghan Bancshares with a short position of ATRenew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Croghan Bancshares and ATRenew.
Diversification Opportunities for Croghan Bancshares and ATRenew
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Croghan and ATRenew is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Croghan Bancshares and ATRenew Inc DRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRenew Inc DRC and Croghan Bancshares 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 Croghan Bancshares are associated (or correlated) with ATRenew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRenew Inc DRC has no effect on the direction of Croghan Bancshares i.e., Croghan Bancshares and ATRenew go up and down completely randomly.
Pair Corralation between Croghan Bancshares and ATRenew
Given the investment horizon of 90 days Croghan Bancshares is expected to generate 3.59 times less return on investment than ATRenew. But when comparing it to its historical volatility, Croghan Bancshares is 3.57 times less risky than ATRenew. It trades about 0.07 of its potential returns per unit of risk. ATRenew Inc DRC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 252.00 in ATRenew Inc DRC on September 5, 2024 and sell it today you would earn a total of 86.00 from holding ATRenew Inc DRC or generate 34.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Croghan Bancshares vs. ATRenew Inc DRC
Performance |
| Timeline |
| Croghan Bancshares |
| ATRenew Inc DRC |
Croghan Bancshares and ATRenew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Croghan Bancshares and ATRenew
The main advantage of trading using opposite Croghan Bancshares and ATRenew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Croghan Bancshares position performs unexpectedly, ATRenew 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 ATRenew will offset losses from the drop in ATRenew's long position.| Croghan Bancshares vs. ATRenew Inc DRC | Croghan Bancshares vs. The Gap, | Croghan Bancshares vs. Lululemon Athletica | Croghan Bancshares vs. Amkor Technology |
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 Stocks Directory module to find actively traded stocks across global markets.
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