Correlation Between FNCB Bancorp and Civista Bancshares
Can any of the company-specific risk be diversified away by investing in both FNCB Bancorp and Civista Bancshares 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 FNCB Bancorp and Civista Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNCB Bancorp and Civista Bancshares, you can compare the effects of market volatilities on FNCB Bancorp and Civista Bancshares 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 FNCB Bancorp with a short position of Civista Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNCB Bancorp and Civista Bancshares.
Diversification Opportunities for FNCB Bancorp and Civista Bancshares
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FNCB and Civista is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding FNCB Bancorp and Civista Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civista Bancshares and FNCB Bancorp 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 FNCB Bancorp are associated (or correlated) with Civista Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civista Bancshares has no effect on the direction of FNCB Bancorp i.e., FNCB Bancorp and Civista Bancshares go up and down completely randomly.
Pair Corralation between FNCB Bancorp and Civista Bancshares
If you would invest 2,039 in Civista Bancshares on November 3, 2024 and sell it today you would earn a total of 167.00 from holding Civista Bancshares or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
FNCB Bancorp vs. Civista Bancshares
Performance |
| Timeline |
| FNCB Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Civista Bancshares |
FNCB Bancorp and Civista Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNCB Bancorp and Civista Bancshares
The main advantage of trading using opposite FNCB Bancorp and Civista Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNCB Bancorp position performs unexpectedly, Civista Bancshares 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 Civista Bancshares will offset losses from the drop in Civista Bancshares' long position.| FNCB Bancorp vs. Home Federal Bancorp | FNCB Bancorp vs. LINKBANCORP | FNCB Bancorp vs. Rhinebeck Bancorp | FNCB Bancorp vs. Lake Shore Bancorp |
| Civista Bancshares vs. Home Federal Bancorp | Civista Bancshares vs. First Financial Northwest | Civista Bancshares vs. First Northwest Bancorp | Civista Bancshares vs. First Capital |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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