Correlation Between Cnb Community and First National
Can any of the company-specific risk be diversified away by investing in both Cnb Community and First National 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 Cnb Community and First National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cnb Community Bancorp and First National Bank, you can compare the effects of market volatilities on Cnb Community and First National 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 Cnb Community with a short position of First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cnb Community and First National.
Diversification Opportunities for Cnb Community and First National
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cnb and First is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cnb Community Bancorp and First National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National Bank and Cnb Community 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 Cnb Community Bancorp are associated (or correlated) with First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Bank has no effect on the direction of Cnb Community i.e., Cnb Community and First National go up and down completely randomly.
Pair Corralation between Cnb Community and First National
If you would invest 22,351 in First National Bank on September 13, 2024 and sell it today you would earn a total of 649.00 from holding First National Bank or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cnb Community Bancorp vs. First National Bank
Performance |
| Timeline |
| Cnb Community Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First National Bank |
Cnb Community and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cnb Community and First National
The main advantage of trading using opposite Cnb Community and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cnb Community position performs unexpectedly, First National 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 First National will offset losses from the drop in First National's long position.| Cnb Community vs. OptimumBank Holdings | Cnb Community vs. First National Bank | Cnb Community vs. TrustCo Bank Corp | Cnb Community vs. Inter Co Class |
| First National vs. IF Bancorp | First National vs. LINKBANCORP | First National vs. Pathfinder Bancorp | First National vs. First Keystone Corp |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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