Correlation Between Crazy Woman and Farmers Bancorp
Can any of the company-specific risk be diversified away by investing in both Crazy Woman and Farmers 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 Crazy Woman and Farmers Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crazy Woman Creek and Farmers Bancorp, you can compare the effects of market volatilities on Crazy Woman and Farmers 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 Crazy Woman with a short position of Farmers Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crazy Woman and Farmers Bancorp.
Diversification Opportunities for Crazy Woman and Farmers Bancorp
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Crazy and Farmers is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Crazy Woman Creek and Farmers Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers Bancorp and Crazy Woman 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 Crazy Woman Creek are associated (or correlated) with Farmers Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers Bancorp has no effect on the direction of Crazy Woman i.e., Crazy Woman and Farmers Bancorp go up and down completely randomly.
Pair Corralation between Crazy Woman and Farmers Bancorp
If you would invest 2,350 in Crazy Woman Creek on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Crazy Woman Creek or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Crazy Woman Creek vs. Farmers Bancorp
Performance |
| Timeline |
| Crazy Woman Creek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Farmers Bancorp |
Crazy Woman and Farmers Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crazy Woman and Farmers Bancorp
The main advantage of trading using opposite Crazy Woman and Farmers Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crazy Woman position performs unexpectedly, Farmers 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 Farmers Bancorp will offset losses from the drop in Farmers Bancorp's long position.The idea behind Crazy Woman Creek and Farmers Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Farmers Bancorp vs. First Farmers Financial | Farmers Bancorp vs. Farmers Merchants Bancorp | Farmers Bancorp vs. Lakeland Financial | Farmers Bancorp vs. Eagle Financial Services |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |