Correlation Between Cullman Bancorp and Partners Bancorp
Can any of the company-specific risk be diversified away by investing in both Cullman Bancorp and Partners 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 Partners 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 Partners Bancorp, you can compare the effects of market volatilities on Cullman Bancorp and Partners 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 Partners Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullman Bancorp and Partners Bancorp.
Diversification Opportunities for Cullman Bancorp and Partners Bancorp
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cullman and Partners is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Cullman Bancorp and Partners Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners 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 Partners Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Bancorp has no effect on the direction of Cullman Bancorp i.e., Cullman Bancorp and Partners Bancorp go up and down completely randomly.
Pair Corralation between Cullman Bancorp and Partners Bancorp
If you would invest 689.00 in Partners Bancorp on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Partners Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cullman Bancorp vs. Partners Bancorp
Performance |
| Timeline |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Partners Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cullman Bancorp and Partners Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cullman Bancorp and Partners Bancorp
The main advantage of trading using opposite Cullman Bancorp and Partners Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullman Bancorp position performs unexpectedly, Partners 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 Partners Bancorp will offset losses from the drop in Partners 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 |
| Partners Bancorp vs. Home Federal Bancorp | Partners Bancorp vs. Magyar Bancorp | Partners Bancorp vs. Community West Bancshares | Partners Bancorp vs. Lake Shore 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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