Correlation Between Cullman Bancorp and Harbor Bankshares
Can any of the company-specific risk be diversified away by investing in both Cullman Bancorp and Harbor 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 Cullman Bancorp and Harbor Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullman Bancorp and Harbor Bankshares, you can compare the effects of market volatilities on Cullman Bancorp and Harbor 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 Cullman Bancorp with a short position of Harbor Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullman Bancorp and Harbor Bankshares.
Diversification Opportunities for Cullman Bancorp and Harbor Bankshares
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cullman and Harbor is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cullman Bancorp and Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Bankshares 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 Harbor Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Bankshares has no effect on the direction of Cullman Bancorp i.e., Cullman Bancorp and Harbor Bankshares go up and down completely randomly.
Pair Corralation between Cullman Bancorp and Harbor Bankshares
Given the investment horizon of 90 days Cullman Bancorp is expected to under-perform the Harbor Bankshares. But the stock apears to be less risky and, when comparing its historical volatility, Cullman Bancorp is 4.16 times less risky than Harbor Bankshares. The stock trades about -0.03 of its potential returns per unit of risk. The Harbor Bankshares is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,713 in Harbor Bankshares on September 12, 2024 and sell it today you would lose (348.00) from holding Harbor Bankshares or give up 20.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.9% |
| Values | Daily Returns |
Cullman Bancorp vs. Harbor Bankshares
Performance |
| Timeline |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Harbor Bankshares |
Cullman Bancorp and Harbor Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullman Bancorp and Harbor Bankshares
The main advantage of trading using opposite Cullman Bancorp and Harbor Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullman Bancorp position performs unexpectedly, Harbor 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 Harbor Bankshares will offset losses from the drop in Harbor Bankshares' 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 |
| Harbor Bankshares vs. PT Bank Rakyat | Harbor Bankshares vs. Morningstar Unconstrained Allocation | Harbor Bankshares vs. Bondbloxx ETF Trust | Harbor Bankshares vs. Spring Valley Acquisition |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |