Correlation Between Permanent TSB and Chemung Financial
Can any of the company-specific risk be diversified away by investing in both Permanent TSB and Chemung 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 Permanent TSB and Chemung Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Permanent TSB Group and Chemung Financial Corp, you can compare the effects of market volatilities on Permanent TSB and Chemung 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 Permanent TSB with a short position of Chemung Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Permanent TSB and Chemung Financial.
Diversification Opportunities for Permanent TSB and Chemung Financial
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Permanent and Chemung is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Permanent TSB Group and Chemung Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chemung Financial Corp and Permanent TSB 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 Permanent TSB Group are associated (or correlated) with Chemung Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chemung Financial Corp has no effect on the direction of Permanent TSB i.e., Permanent TSB and Chemung Financial go up and down completely randomly.
Pair Corralation between Permanent TSB and Chemung Financial
Assuming the 90 days horizon Permanent TSB Group is expected to under-perform the Chemung Financial. But the pink sheet apears to be less risky and, when comparing its historical volatility, Permanent TSB Group is 1.2 times less risky than Chemung Financial. The pink sheet trades about -0.21 of its potential returns per unit of risk. The Chemung Financial Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 4,778 in Chemung Financial Corp on September 1, 2024 and sell it today you would earn a total of 455.00 from holding Chemung Financial Corp or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Permanent TSB Group vs. Chemung Financial Corp
Performance |
| Timeline |
| Permanent TSB Group |
| Chemung Financial Corp |
Permanent TSB and Chemung Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Permanent TSB and Chemung Financial
The main advantage of trading using opposite Permanent TSB and Chemung Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Permanent TSB position performs unexpectedly, Chemung 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 Chemung Financial will offset losses from the drop in Chemung Financial's long position.| Permanent TSB vs. Bank Mandiri Persero | Permanent TSB vs. Piraeus Bank SA | Permanent TSB vs. Kasikornbank Public Co | Permanent TSB vs. Turkiye Garanti Bankasi |
| Chemung Financial vs. Affinity Bancshares | Chemung Financial vs. Southern California Bancorp | Chemung Financial vs. Auburn National Bancorporation | Chemung Financial vs. BayCom Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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