Correlation Between Fidelity and Chemung Financial
Can any of the company-specific risk be diversified away by investing in both Fidelity and Chemung Financial 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 Chemung Financial 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 Chemung Financial Corp, you can compare the effects of market volatilities on Fidelity and Chemung Financial 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 Chemung Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity and Chemung Financial.
Diversification Opportunities for Fidelity and Chemung Financial
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Chemung is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity DD Bancorp and Chemung Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemung Financial Corp 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 Chemung Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemung Financial Corp has no effect on the direction of Fidelity i.e., Fidelity and Chemung Financial go up and down completely randomly.
Pair Corralation between Fidelity and Chemung Financial
Given the investment horizon of 90 days Fidelity DD Bancorp is expected to under-perform the Chemung Financial. In addition to that, Fidelity is 1.73 times more volatile than Chemung Financial Corp. It trades about 0.0 of its total potential returns per unit of risk. Chemung Financial Corp is currently generating about 0.0 per unit of volatility. If you would invest 4,821 in Chemung Financial Corp on October 22, 2024 and sell it today you would lose (111.00) from holding Chemung Financial Corp or give up 2.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity DD Bancorp vs. Chemung Financial Corp
Performance |
| Timeline |
| Fidelity DD Bancorp |
| Chemung Financial Corp |
Fidelity and Chemung Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity and Chemung Financial
The main advantage of trading using opposite Fidelity and Chemung Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity position performs unexpectedly, Chemung Financial 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 Chemung Financial will offset losses from the drop in Chemung Financial's long position.| Fidelity vs. Chemung Financial Corp | Fidelity vs. Oak Valley Bancorp | Fidelity vs. First Community | Fidelity vs. National Bankshares |
| Chemung Financial vs. Finward Bancorp | Chemung Financial vs. Community West Bancshares | Chemung Financial vs. First Financial Northwest | Chemung Financial vs. Oak Valley Bancorp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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