Correlation Between Kearny Financial and Chemung Financial
Can any of the company-specific risk be diversified away by investing in both Kearny Financial 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 Kearny Financial and Chemung Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kearny Financial Corp and Chemung Financial Corp, you can compare the effects of market volatilities on Kearny Financial 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 Kearny Financial with a short position of Chemung Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kearny Financial and Chemung Financial.
Diversification Opportunities for Kearny Financial and Chemung Financial
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Kearny and Chemung is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Kearny Financial Corp 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 Kearny 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 Kearny Financial Corp 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 Kearny Financial i.e., Kearny Financial and Chemung Financial go up and down completely randomly.
Pair Corralation between Kearny Financial and Chemung Financial
Given the investment horizon of 90 days Kearny Financial Corp is expected to generate 2.25 times more return on investment than Chemung Financial. However, Kearny Financial is 2.25 times more volatile than Chemung Financial Corp. It trades about 0.22 of its potential returns per unit of risk. Chemung Financial Corp is currently generating about 0.26 per unit of risk. If you would invest 688.00 in Kearny Financial Corp on August 28, 2024 and sell it today you would earn a total of 133.00 from holding Kearny Financial Corp or generate 19.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Kearny Financial Corp vs. Chemung Financial Corp
Performance |
| Timeline |
| Kearny Financial Corp |
| Chemung Financial Corp |
Kearny Financial and Chemung Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kearny Financial and Chemung Financial
The main advantage of trading using opposite Kearny Financial and Chemung Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kearny Financial 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.| Kearny Financial vs. National Bank Holdings | Kearny Financial vs. Community West Bancshares | Kearny Financial vs. Financial Institutions | Kearny Financial vs. Heritage Financial |
| Chemung Financial vs. Finward Bancorp | Chemung Financial vs. Community West Bancshares | Chemung Financial vs. First Financial Northwest | Chemung Financial vs. Oak Valley Bancorp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |