Correlation Between Farmers Bank and Coastal Carolina
Can any of the company-specific risk be diversified away by investing in both Farmers Bank and Coastal Carolina 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 Farmers Bank and Coastal Carolina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Farmers Bank and Coastal Carolina Bancshares, you can compare the effects of market volatilities on Farmers Bank and Coastal Carolina 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 Farmers Bank with a short position of Coastal Carolina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmers Bank and Coastal Carolina.
Diversification Opportunities for Farmers Bank and Coastal Carolina
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Farmers and Coastal is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding The Farmers Bank and Coastal Carolina Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coastal Carolina Ban and Farmers Bank 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 The Farmers Bank are associated (or correlated) with Coastal Carolina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Carolina Ban has no effect on the direction of Farmers Bank i.e., Farmers Bank and Coastal Carolina go up and down completely randomly.
Pair Corralation between Farmers Bank and Coastal Carolina
Given the investment horizon of 90 days Farmers Bank is expected to generate 6.28 times less return on investment than Coastal Carolina. In addition to that, Farmers Bank is 1.53 times more volatile than Coastal Carolina Bancshares. It trades about 0.01 of its total potential returns per unit of risk. Coastal Carolina Bancshares is currently generating about 0.07 per unit of volatility. If you would invest 935.00 in Coastal Carolina Bancshares on August 29, 2024 and sell it today you would earn a total of 166.00 from holding Coastal Carolina Bancshares or generate 17.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 71.47% |
| Values | Daily Returns |
The Farmers Bank vs. Coastal Carolina Bancshares
Performance |
| Timeline |
| Farmers Bank |
| Coastal Carolina Ban |
Farmers Bank and Coastal Carolina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farmers Bank and Coastal Carolina
The main advantage of trading using opposite Farmers Bank and Coastal Carolina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmers Bank position performs unexpectedly, Coastal Carolina 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 Coastal Carolina will offset losses from the drop in Coastal Carolina's long position.| Farmers Bank vs. CIB Marine Bancshares | Farmers Bank vs. F M Bank | Farmers Bank vs. ENB Financial Corp | Farmers Bank vs. First Bankers Trustshares |
| Coastal Carolina vs. First Bankers Trustshares | Coastal Carolina vs. Greenville Federal Financial | Coastal Carolina vs. First Ottawa Bancshares | Coastal Carolina vs. Citizens Bancorp Investment |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |