Correlation Between FineMark Holdings and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both FineMark Holdings 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 FineMark Holdings and CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FineMark Holdings and CCSB Financial Corp, you can compare the effects of market volatilities on FineMark Holdings 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 FineMark Holdings with a short position of CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FineMark Holdings and CCSB Financial.
Diversification Opportunities for FineMark Holdings and CCSB Financial
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FineMark and CCSB is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding FineMark Holdings 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 FineMark Holdings 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 FineMark Holdings 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 FineMark Holdings i.e., FineMark Holdings and CCSB Financial go up and down completely randomly.
Pair Corralation between FineMark Holdings and CCSB Financial
Given the investment horizon of 90 days FineMark Holdings is expected to generate 0.39 times more return on investment than CCSB Financial. However, FineMark Holdings is 2.54 times less risky than CCSB Financial. It trades about -0.02 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.02 per unit of risk. If you would invest 3,006 in FineMark Holdings on November 2, 2024 and sell it today you would lose (316.00) from holding FineMark Holdings or give up 10.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
FineMark Holdings vs. CCSB Financial Corp
Performance |
| Timeline |
| FineMark Holdings |
| CCSB Financial Corp |
FineMark Holdings and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FineMark Holdings and CCSB Financial
The main advantage of trading using opposite FineMark Holdings and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FineMark Holdings 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.| FineMark Holdings vs. Huntington Bancshares Incorporated | FineMark Holdings vs. KeyCorp | FineMark Holdings vs. Citizens Financial Group, | FineMark Holdings vs. Western Alliance Bancorporation |
| CCSB Financial vs. Brunswick | CCSB Financial vs. Tesla Inc | CCSB Financial vs. Envista Holdings Corp | CCSB Financial vs. BorgWarner |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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