Correlation Between Inter Co and Cnb Community
Can any of the company-specific risk be diversified away by investing in both Inter Co and Cnb Community 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 Inter Co and Cnb Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Co Class and Cnb Community Bancorp, you can compare the effects of market volatilities on Inter Co and Cnb Community 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 Inter Co with a short position of Cnb Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Co and Cnb Community.
Diversification Opportunities for Inter Co and Cnb Community
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inter and Cnb is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Inter Co Class and Cnb Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnb Community Bancorp and Inter Co 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 Inter Co Class are associated (or correlated) with Cnb Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnb Community Bancorp has no effect on the direction of Inter Co i.e., Inter Co and Cnb Community go up and down completely randomly.
Pair Corralation between Inter Co and Cnb Community
If you would invest 4,101 in Cnb Community Bancorp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Cnb Community Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Inter Co Class vs. Cnb Community Bancorp
Performance |
| Timeline |
| Inter Co Class |
| Cnb Community Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Inter Co and Cnb Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Co and Cnb Community
The main advantage of trading using opposite Inter Co and Cnb Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Co position performs unexpectedly, Cnb Community 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 Community will offset losses from the drop in Cnb Community's long position.| Inter Co vs. Community West Bancshares | Inter Co vs. First Financial Northwest | Inter Co vs. First Northwest Bancorp | Inter Co vs. First Capital |
| Cnb Community vs. OptimumBank Holdings | Cnb Community vs. First National Bank | Cnb Community vs. TrustCo Bank Corp | Cnb Community vs. Inter Co Class |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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