Correlation Between CIB Marine and Blackhawk Bancorp
Can any of the company-specific risk be diversified away by investing in both CIB Marine and Blackhawk Bancorp 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 CIB Marine and Blackhawk Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIB Marine Bancshares and Blackhawk Bancorp, you can compare the effects of market volatilities on CIB Marine and Blackhawk Bancorp 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 CIB Marine with a short position of Blackhawk Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIB Marine and Blackhawk Bancorp.
Diversification Opportunities for CIB Marine and Blackhawk Bancorp
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CIB and Blackhawk is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding CIB Marine Bancshares and Blackhawk Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackhawk Bancorp and CIB Marine 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 CIB Marine Bancshares are associated (or correlated) with Blackhawk Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackhawk Bancorp has no effect on the direction of CIB Marine i.e., CIB Marine and Blackhawk Bancorp go up and down completely randomly.
Pair Corralation between CIB Marine and Blackhawk Bancorp
Given the investment horizon of 90 days CIB Marine is expected to generate 6.92 times less return on investment than Blackhawk Bancorp. In addition to that, CIB Marine is 1.49 times more volatile than Blackhawk Bancorp. It trades about 0.03 of its total potential returns per unit of risk. Blackhawk Bancorp is currently generating about 0.35 per unit of volatility. If you would invest 2,885 in Blackhawk Bancorp on August 31, 2024 and sell it today you would earn a total of 465.00 from holding Blackhawk Bancorp or generate 16.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.56% |
| Values | Daily Returns |
CIB Marine Bancshares vs. Blackhawk Bancorp
Performance |
| Timeline |
| CIB Marine Bancshares |
| Blackhawk Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CIB Marine and Blackhawk Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIB Marine and Blackhawk Bancorp
The main advantage of trading using opposite CIB Marine and Blackhawk Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIB Marine position performs unexpectedly, Blackhawk Bancorp 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 Blackhawk Bancorp will offset losses from the drop in Blackhawk Bancorp's long position.| CIB Marine vs. U I Financial | CIB Marine vs. Heartland Banccorp | CIB Marine vs. United Bancorporation of | CIB Marine vs. Harbor Bankshares |
| Blackhawk Bancorp vs. CCSB Financial Corp | Blackhawk Bancorp vs. Bank of Utica | Blackhawk Bancorp vs. First Community Financial | Blackhawk Bancorp vs. BEO Bancorp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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