Correlation Between First National and Cnb Community
Can any of the company-specific risk be diversified away by investing in both First National and Cnb Community 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 First National and Cnb Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First National Bank and Cnb Community Bancorp, you can compare the effects of market volatilities on First National and Cnb Community 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 First National with a short position of Cnb Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of First National and Cnb Community.
Diversification Opportunities for First National and Cnb Community
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Cnb is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First National Bank and Cnb Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnb Community Bancorp and First National 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 First National Bank are associated (or correlated) with Cnb Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnb Community Bancorp has no effect on the direction of First National i.e., First National and Cnb Community go up and down completely randomly.
Pair Corralation between First National and Cnb Community
If you would invest 19,469 in First National Bank on September 12, 2024 and sell it today you would earn a total of 3,531 from holding First National Bank or generate 18.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
First National Bank vs. Cnb Community Bancorp
Performance |
| Timeline |
| First National Bank |
| Cnb Community Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First National and Cnb Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First National and Cnb Community
The main advantage of trading using opposite First National and Cnb Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National position performs unexpectedly, Cnb Community 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 Cnb Community will offset losses from the drop in Cnb Community's long position.| First National vs. IF Bancorp | First National vs. LINKBANCORP | First National vs. Pathfinder Bancorp | First National vs. First Keystone Corp |
| Cnb Community vs. OptimumBank Holdings | Cnb Community vs. First National Bank | Cnb Community vs. TrustCo Bank Corp | Cnb Community vs. Inter Co Class |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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