Correlation Between Chemung Financial and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both Chemung Financial and Greenville Federal 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 Greenville Federal 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 Greenville Federal Financial, you can compare the effects of market volatilities on Chemung Financial and Greenville Federal 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 Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemung Financial and Greenville Federal.
Diversification Opportunities for Chemung Financial and Greenville Federal
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chemung and Greenville is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Chemung Financial Corp and Greenville Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenville Federal 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 Greenville Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenville Federal has no effect on the direction of Chemung Financial i.e., Chemung Financial and Greenville Federal go up and down completely randomly.
Pair Corralation between Chemung Financial and Greenville Federal
Given the investment horizon of 90 days Chemung Financial Corp is expected to generate 18.94 times more return on investment than Greenville Federal. However, Chemung Financial is 18.94 times more volatile than Greenville Federal Financial. It trades about 0.14 of its potential returns per unit of risk. Greenville Federal Financial is currently generating about 0.31 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 | 95.24% |
| Values | Daily Returns |
Chemung Financial Corp vs. Greenville Federal Financial
Performance |
| Timeline |
| Chemung Financial Corp |
| Greenville Federal |
Chemung Financial and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemung Financial and Greenville Federal
The main advantage of trading using opposite Chemung Financial and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemung Financial position performs unexpectedly, Greenville Federal 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 Greenville Federal will offset losses from the drop in Greenville Federal'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 |
| Greenville Federal vs. First Bankers Trustshares | Greenville Federal vs. First Ottawa Bancshares | Greenville Federal vs. Coastal Carolina Bancshares | Greenville Federal vs. Citizens Bancorp Investment |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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