Correlation Between Kish Bancorp and CNB
Can any of the company-specific risk be diversified away by investing in both Kish Bancorp and CNB 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 Kish Bancorp and CNB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kish Bancorp and CNB Corporation, you can compare the effects of market volatilities on Kish Bancorp and CNB 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 Kish Bancorp with a short position of CNB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kish Bancorp and CNB.
Diversification Opportunities for Kish Bancorp and CNB
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kish and CNB is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kish Bancorp and CNB Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNB Corporation and Kish 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 Kish Bancorp are associated (or correlated) with CNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNB Corporation has no effect on the direction of Kish Bancorp i.e., Kish Bancorp and CNB go up and down completely randomly.
Pair Corralation between Kish Bancorp and CNB
Given the investment horizon of 90 days Kish Bancorp is expected to generate 4.47 times less return on investment than CNB. But when comparing it to its historical volatility, Kish Bancorp is 1.18 times less risky than CNB. It trades about 0.01 of its potential returns per unit of risk. CNB Corporation is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,582 in CNB Corporation on September 12, 2024 and sell it today you would earn a total of 168.00 from holding CNB Corporation or generate 10.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.14% |
| Values | Daily Returns |
Kish Bancorp vs. CNB Corp.
Performance |
| Timeline |
| Kish Bancorp |
| CNB Corporation |
Kish Bancorp and CNB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kish Bancorp and CNB
The main advantage of trading using opposite Kish Bancorp and CNB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kish Bancorp position performs unexpectedly, CNB 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 will offset losses from the drop in CNB's long position.| Kish Bancorp vs. CNB Corporation | Kish Bancorp vs. FNB Inc | Kish Bancorp vs. Community Bankers | Kish Bancorp vs. Apollo Bancorp |
| CNB vs. PT Bank Rakyat | CNB vs. Bank Mandiri Persero | CNB vs. Morningstar Unconstrained Allocation | CNB vs. Bondbloxx ETF Trust |
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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