Correlation Between Civista Bancshares and CF Bankshares
Can any of the company-specific risk be diversified away by investing in both Civista Bancshares and CF Bankshares 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 Civista Bancshares and CF Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Civista Bancshares and CF Bankshares, you can compare the effects of market volatilities on Civista Bancshares and CF Bankshares 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 Civista Bancshares with a short position of CF Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Civista Bancshares and CF Bankshares.
Diversification Opportunities for Civista Bancshares and CF Bankshares
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Civista and CFBK is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Civista Bancshares and CF Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Bankshares and Civista 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 Civista Bancshares are associated (or correlated) with CF Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Bankshares has no effect on the direction of Civista Bancshares i.e., Civista Bancshares and CF Bankshares go up and down completely randomly.
Pair Corralation between Civista Bancshares and CF Bankshares
Given the investment horizon of 90 days Civista Bancshares is expected to generate 0.89 times more return on investment than CF Bankshares. However, Civista Bancshares is 1.12 times less risky than CF Bankshares. It trades about 0.28 of its potential returns per unit of risk. CF Bankshares is currently generating about 0.18 per unit of risk. If you would invest 2,020 in Civista Bancshares on September 3, 2024 and sell it today you would earn a total of 268.00 from holding Civista Bancshares or generate 13.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Civista Bancshares vs. CF Bankshares
Performance |
| Timeline |
| Civista Bancshares |
| CF Bankshares |
Civista Bancshares and CF Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Civista Bancshares and CF Bankshares
The main advantage of trading using opposite Civista Bancshares and CF Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Civista Bancshares position performs unexpectedly, CF Bankshares 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 CF Bankshares will offset losses from the drop in CF Bankshares' long position.| Civista Bancshares vs. Home Federal Bancorp | Civista Bancshares vs. First Financial Northwest | Civista Bancshares vs. First Northwest Bancorp | Civista Bancshares vs. First Capital |
| CF Bankshares vs. JPMorgan Chase Co | CF Bankshares vs. Citigroup | CF Bankshares vs. Wells Fargo | CF Bankshares vs. Toronto Dominion Bank |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |