Correlation Between ConnectOne Bancorp and Cullman Bancorp
Can any of the company-specific risk be diversified away by investing in both ConnectOne Bancorp and Cullman 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 ConnectOne Bancorp and Cullman Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConnectOne Bancorp and Cullman Bancorp, you can compare the effects of market volatilities on ConnectOne Bancorp and Cullman 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 ConnectOne Bancorp with a short position of Cullman Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConnectOne Bancorp and Cullman Bancorp.
Diversification Opportunities for ConnectOne Bancorp and Cullman Bancorp
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ConnectOne and Cullman is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding ConnectOne Bancorp and Cullman Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullman Bancorp and ConnectOne Bancorp 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 ConnectOne Bancorp are associated (or correlated) with Cullman Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullman Bancorp has no effect on the direction of ConnectOne Bancorp i.e., ConnectOne Bancorp and Cullman Bancorp go up and down completely randomly.
Pair Corralation between ConnectOne Bancorp and Cullman Bancorp
If you would invest 2,084 in ConnectOne Bancorp on August 24, 2024 and sell it today you would earn a total of 95.00 from holding ConnectOne Bancorp or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
ConnectOne Bancorp vs. Cullman Bancorp
Performance |
| Timeline |
| ConnectOne Bancorp |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ConnectOne Bancorp and Cullman Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConnectOne Bancorp and Cullman Bancorp
The main advantage of trading using opposite ConnectOne Bancorp and Cullman Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConnectOne Bancorp position performs unexpectedly, Cullman 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 Cullman Bancorp will offset losses from the drop in Cullman Bancorp's long position.| ConnectOne Bancorp vs. Capital One Financial | ConnectOne Bancorp vs. Capital One Financial | ConnectOne Bancorp vs. Bank of America | ConnectOne Bancorp vs. KeyCorp |
| Cullman Bancorp vs. Home Federal Bancorp | Cullman Bancorp vs. Lake Shore Bancorp | Cullman Bancorp vs. Community West Bancshares | Cullman Bancorp vs. Magyar 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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