Correlation Between CVCY Old and Home Federal
Can any of the company-specific risk be diversified away by investing in both CVCY Old and Home Federal 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 CVCY Old and Home Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVCY Old and Home Federal Bancorp, you can compare the effects of market volatilities on CVCY Old and Home Federal 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 CVCY Old with a short position of Home Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVCY Old and Home Federal.
Diversification Opportunities for CVCY Old and Home Federal
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CVCY and Home is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding CVCY Old and Home Federal Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home Federal Bancorp and CVCY Old 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 CVCY Old are associated (or correlated) with Home Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Federal Bancorp has no effect on the direction of CVCY Old i.e., CVCY Old and Home Federal go up and down completely randomly.
Pair Corralation between CVCY Old and Home Federal
If you would invest 1,279 in Home Federal Bancorp on November 5, 2024 and sell it today you would lose (9.00) from holding Home Federal Bancorp or give up 0.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.44% |
| Values | Daily Returns |
CVCY Old vs. Home Federal Bancorp
Performance |
| Timeline |
| CVCY Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Home Federal Bancorp |
CVCY Old and Home Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVCY Old and Home Federal
The main advantage of trading using opposite CVCY Old and Home Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVCY Old position performs unexpectedly, Home Federal 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 Home Federal will offset losses from the drop in Home Federal's long position.| CVCY Old vs. Home Federal Bancorp | CVCY Old vs. First Northwest Bancorp | CVCY Old vs. Magyar Bancorp | CVCY Old vs. First United |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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