Correlation Between Cullman Bancorp and OP Bancorp
Can any of the company-specific risk be diversified away by investing in both Cullman Bancorp and OP 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 Cullman Bancorp and OP Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullman Bancorp and OP Bancorp, you can compare the effects of market volatilities on Cullman Bancorp and OP 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 Cullman Bancorp with a short position of OP Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullman Bancorp and OP Bancorp.
Diversification Opportunities for Cullman Bancorp and OP Bancorp
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cullman and OPBK is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cullman Bancorp and OP Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OP 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 OP Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OP Bancorp has no effect on the direction of Cullman Bancorp i.e., Cullman Bancorp and OP Bancorp go up and down completely randomly.
Pair Corralation between Cullman Bancorp and OP Bancorp
If you would invest 1,464 in OP Bancorp on September 2, 2024 and sell it today you would earn a total of 269.00 from holding OP Bancorp or generate 18.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Cullman Bancorp vs. OP Bancorp
Performance |
| Timeline |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OP Bancorp |
Cullman Bancorp and OP Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullman Bancorp and OP Bancorp
The main advantage of trading using opposite Cullman Bancorp and OP Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullman Bancorp position performs unexpectedly, OP 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 OP Bancorp will offset losses from the drop in OP Bancorp'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 |
| OP Bancorp vs. PCB Bancorp | OP Bancorp vs. Hope Bancorp | OP Bancorp vs. RBB Bancorp | OP Bancorp vs. BayCom 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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