Correlation Between Chemung Financial and BOK Financial
Can any of the company-specific risk be diversified away by investing in both Chemung Financial and BOK Financial 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 BOK Financial 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 BOK Financial, you can compare the effects of market volatilities on Chemung Financial and BOK Financial 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 BOK Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemung Financial and BOK Financial.
Diversification Opportunities for Chemung Financial and BOK Financial
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chemung and BOK is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Chemung Financial Corp and BOK Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOK 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 BOK Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOK Financial has no effect on the direction of Chemung Financial i.e., Chemung Financial and BOK Financial go up and down completely randomly.
Pair Corralation between Chemung Financial and BOK Financial
Given the investment horizon of 90 days Chemung Financial Corp is expected to under-perform the BOK Financial. In addition to that, Chemung Financial is 1.08 times more volatile than BOK Financial. It trades about -0.23 of its total potential returns per unit of risk. BOK Financial is currently generating about -0.19 per unit of volatility. If you would invest 9,910 in BOK Financial on January 12, 2025 and sell it today you would lose (1,124) from holding BOK Financial or give up 11.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemung Financial Corp vs. BOK Financial
Performance |
| Timeline |
| Chemung Financial Corp |
| BOK Financial |
Chemung Financial and BOK Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemung Financial and BOK Financial
The main advantage of trading using opposite Chemung Financial and BOK Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemung Financial position performs unexpectedly, BOK Financial 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 BOK Financial will offset losses from the drop in BOK Financial'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 |
| BOK Financial vs. First Financial Bankshares | BOK Financial vs. Auburn National Bancorporation | BOK Financial vs. Great Southern Bancorp | BOK Financial vs. First Guaranty Bancshares |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |