Correlation Between CVB Financial and New York
Can any of the company-specific risk be diversified away by investing in both CVB Financial and New York 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 CVB Financial and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVB Financial and New York Community, you can compare the effects of market volatilities on CVB Financial and New York 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 CVB Financial with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVB Financial and New York.
Diversification Opportunities for CVB Financial and New York
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between CVB and New is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding CVB Financial and New York Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Community and CVB Financial 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 CVB Financial are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Community has no effect on the direction of CVB Financial i.e., CVB Financial and New York go up and down completely randomly.
Pair Corralation between CVB Financial and New York
Given the investment horizon of 90 days CVB Financial is expected to generate 0.78 times more return on investment than New York. However, CVB Financial is 1.28 times less risky than New York. It trades about 0.18 of its potential returns per unit of risk. New York Community is currently generating about 0.03 per unit of risk. If you would invest 1,772 in CVB Financial on August 31, 2024 and sell it today you would earn a total of 611.00 from holding CVB Financial or generate 34.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
CVB Financial vs. New York Community
Performance |
| Timeline |
| CVB Financial |
| New York Community |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
CVB Financial and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVB Financial and New York
The main advantage of trading using opposite CVB Financial and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVB Financial position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| CVB Financial vs. First Interstate BancSystem | CVB Financial vs. First Financial Bankshares | CVB Financial vs. Independent Bank Group | CVB Financial vs. Eagle Bancorp Montana |
| New York vs. KeyCorp | New York vs. Fifth Third Bancorp | New York vs. Regions Financial | New York vs. Zions Bancorporation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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