Correlation Between High Country and CNB Financial
Can any of the company-specific risk be diversified away by investing in both High Country and CNB 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 High Country and CNB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between High Country Bancorp and CNB Financial, you can compare the effects of market volatilities on High Country and CNB 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 High Country with a short position of CNB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of High Country and CNB Financial.
Diversification Opportunities for High Country and CNB Financial
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between High and CNB is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding High Country Bancorp and CNB Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNB Financial and High Country 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 High Country Bancorp are associated (or correlated) with CNB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNB Financial has no effect on the direction of High Country i.e., High Country and CNB Financial go up and down completely randomly.
Pair Corralation between High Country and CNB Financial
If you would invest 3,800 in High Country Bancorp on September 14, 2024 and sell it today you would earn a total of 0.00 from holding High Country Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
High Country Bancorp vs. CNB Financial
Performance |
| Timeline |
| High Country Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CNB Financial |
High Country and CNB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with High Country and CNB Financial
The main advantage of trading using opposite High Country and CNB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if High Country position performs unexpectedly, CNB 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 CNB Financial will offset losses from the drop in CNB Financial's long position.| High Country vs. Kentucky First Federal | High Country vs. Farmers And Merchants | High Country vs. First Keystone Corp | High Country vs. Citizens Financial Services |
| CNB Financial vs. Finward Bancorp | CNB Financial vs. Great Southern Bancorp | CNB Financial vs. First Mid Illinois | CNB Financial vs. Franklin Financial Services |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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