Correlation Between Chemung Financial and Oak Ridge
Can any of the company-specific risk be diversified away by investing in both Chemung Financial and Oak Ridge 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 Chemung Financial and Oak Ridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemung Financial Corp and Oak Ridge Financial, you can compare the effects of market volatilities on Chemung Financial and Oak Ridge 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 Chemung Financial with a short position of Oak Ridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemung Financial and Oak Ridge.
Diversification Opportunities for Chemung Financial and Oak Ridge
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chemung and Oak is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Chemung Financial Corp and Oak Ridge Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oak Ridge Financial and Chemung 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 Chemung Financial Corp are associated (or correlated) with Oak Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oak Ridge Financial has no effect on the direction of Chemung Financial i.e., Chemung Financial and Oak Ridge go up and down completely randomly.
Pair Corralation between Chemung Financial and Oak Ridge
Given the investment horizon of 90 days Chemung Financial Corp is expected to generate 5.1 times more return on investment than Oak Ridge. However, Chemung Financial is 5.1 times more volatile than Oak Ridge Financial. It trades about 0.14 of its potential returns per unit of risk. Oak Ridge Financial is currently generating about 0.0 per unit of risk. If you would invest 4,672 in Chemung Financial Corp on November 27, 2024 and sell it today you would earn a total of 436.00 from holding Chemung Financial Corp or generate 9.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemung Financial Corp vs. Oak Ridge Financial
Performance |
| Timeline |
| Chemung Financial Corp |
| Oak Ridge Financial |
Chemung Financial and Oak Ridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemung Financial and Oak Ridge
The main advantage of trading using opposite Chemung Financial and Oak Ridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemung Financial position performs unexpectedly, Oak Ridge 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 Oak Ridge will offset losses from the drop in Oak Ridge's long position.| Chemung Financial vs. Finward Bancorp | Chemung Financial vs. Community West Bancshares | Chemung Financial vs. First Financial Northwest | Chemung Financial vs. Oak Valley Bancorp |
| Oak Ridge vs. Citizens Bancorp Investment | Oak Ridge vs. First Keystone Corp | Oak Ridge vs. Greenville Federal Financial | Oak Ridge vs. Main Street Financial |
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 Positions Ratings module to 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.
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