Correlation Between Fidelity and Coastal Carolina
Can any of the company-specific risk be diversified away by investing in both Fidelity 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 Fidelity and Coastal Carolina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity DD Bancorp and Coastal Carolina Bancshares, you can compare the effects of market volatilities on Fidelity 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 Fidelity with a short position of Coastal Carolina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity and Coastal Carolina.
Diversification Opportunities for Fidelity and Coastal Carolina
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Coastal is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity DD Bancorp 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 Fidelity 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 Fidelity DD Bancorp 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 Fidelity i.e., Fidelity and Coastal Carolina go up and down completely randomly.
Pair Corralation between Fidelity and Coastal Carolina
Given the investment horizon of 90 days Fidelity is expected to generate 3.04 times less return on investment than Coastal Carolina. In addition to that, Fidelity is 1.59 times more volatile than Coastal Carolina Bancshares. It trades about 0.08 of its total potential returns per unit of risk. Coastal Carolina Bancshares is currently generating about 0.36 per unit of volatility. If you would invest 1,015 in Coastal Carolina Bancshares on September 1, 2024 and sell it today you would earn a total of 110.00 from holding Coastal Carolina Bancshares or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity DD Bancorp vs. Coastal Carolina Bancshares
Performance |
| Timeline |
| Fidelity DD Bancorp |
| Coastal Carolina Ban |
Fidelity and Coastal Carolina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity and Coastal Carolina
The main advantage of trading using opposite Fidelity and Coastal Carolina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity 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.| Fidelity vs. Chemung Financial Corp | Fidelity vs. Oak Valley Bancorp | Fidelity vs. First Community | Fidelity vs. National Bankshares |
| 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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