Correlation Between Fifth Third and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both Fifth Third and CCSB 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 Fifth Third and CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fifth Third Bancorp and CCSB Financial Corp, you can compare the effects of market volatilities on Fifth Third and CCSB 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 Fifth Third with a short position of CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fifth Third and CCSB Financial.
Diversification Opportunities for Fifth Third and CCSB Financial
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fifth and CCSB is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fifth Third Bancorp and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp and Fifth Third 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 Fifth Third Bancorp are associated (or correlated) with CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Fifth Third i.e., Fifth Third and CCSB Financial go up and down completely randomly.
Pair Corralation between Fifth Third and CCSB Financial
Given the investment horizon of 90 days Fifth Third Bancorp is expected to generate 1.57 times more return on investment than CCSB Financial. However, Fifth Third is 1.57 times more volatile than CCSB Financial Corp. It trades about 0.14 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.13 per unit of risk. If you would invest 4,212 in Fifth Third Bancorp on September 2, 2024 and sell it today you would earn a total of 594.00 from holding Fifth Third Bancorp or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fifth Third Bancorp vs. CCSB Financial Corp
Performance |
| Timeline |
| Fifth Third Bancorp |
| CCSB Financial Corp |
Fifth Third and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fifth Third and CCSB Financial
The main advantage of trading using opposite Fifth Third and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fifth Third position performs unexpectedly, CCSB 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| Fifth Third vs. KeyCorp | Fifth Third vs. Regions Financial | Fifth Third vs. Zions Bancorporation | Fifth Third vs. Huntington Bancshares Incorporated |
| CCSB Financial vs. HUMANA INC | CCSB Financial vs. SCOR PK | CCSB Financial vs. Aquagold International | CCSB Financial vs. Thrivent High Yield |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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