Correlation Between HMN Financial and CVCY Old
Can any of the company-specific risk be diversified away by investing in both HMN Financial and CVCY Old 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 HMN Financial and CVCY Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HMN Financial and CVCY Old, you can compare the effects of market volatilities on HMN Financial and CVCY Old 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 HMN Financial with a short position of CVCY Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of HMN Financial and CVCY Old.
Diversification Opportunities for HMN Financial and CVCY Old
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between HMN and CVCY is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding HMN Financial and CVCY Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVCY Old and HMN Financial 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 HMN Financial are associated (or correlated) with CVCY Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVCY Old has no effect on the direction of HMN Financial i.e., HMN Financial and CVCY Old go up and down completely randomly.
Pair Corralation between HMN Financial and CVCY Old
If you would invest 2,085 in HMN Financial on November 5, 2024 and sell it today you would earn a total of 714.00 from holding HMN Financial or generate 34.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.59% |
| Values | Daily Returns |
HMN Financial vs. CVCY Old
Performance |
| Timeline |
| HMN Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CVCY Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HMN Financial and CVCY Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HMN Financial and CVCY Old
The main advantage of trading using opposite HMN Financial and CVCY Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HMN Financial position performs unexpectedly, CVCY Old 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 CVCY Old will offset losses from the drop in CVCY Old's long position.| HMN Financial vs. Magyar Bancorp | HMN Financial vs. Home Federal Bancorp | HMN Financial vs. First Financial Northwest | HMN Financial vs. First Northwest Bancorp |
| CVCY Old vs. Home Federal Bancorp | CVCY Old vs. First Northwest Bancorp | CVCY Old vs. Magyar Bancorp | CVCY Old vs. First United |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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