Correlation Between Cullman Bancorp and Greene County
Can any of the company-specific risk be diversified away by investing in both Cullman Bancorp and Greene County 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 Cullman Bancorp and Greene County into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullman Bancorp and Greene County Bancorp, you can compare the effects of market volatilities on Cullman Bancorp and Greene County 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 Cullman Bancorp with a short position of Greene County. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullman Bancorp and Greene County.
Diversification Opportunities for Cullman Bancorp and Greene County
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cullman and Greene is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Cullman Bancorp and Greene County Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greene County Bancorp and Cullman 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 Cullman Bancorp are associated (or correlated) with Greene County. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greene County Bancorp has no effect on the direction of Cullman Bancorp i.e., Cullman Bancorp and Greene County go up and down completely randomly.
Pair Corralation between Cullman Bancorp and Greene County
If you would invest 2,837 in Greene County Bancorp on August 30, 2024 and sell it today you would earn a total of 199.00 from holding Greene County Bancorp or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Cullman Bancorp vs. Greene County Bancorp
Performance |
| Timeline |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Greene County Bancorp |
Cullman Bancorp and Greene County Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullman Bancorp and Greene County
The main advantage of trading using opposite Cullman Bancorp and Greene County positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullman Bancorp position performs unexpectedly, Greene County 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 Greene County will offset losses from the drop in Greene County's long position.| Cullman Bancorp vs. Home Federal Bancorp | Cullman Bancorp vs. Lake Shore Bancorp | Cullman Bancorp vs. Community West Bancshares | Cullman Bancorp vs. Magyar Bancorp |
| Greene County vs. Community West Bancshares | Greene County vs. First Northwest Bancorp | Greene County vs. Home Federal Bancorp | Greene County vs. First Financial Northwest |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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