Correlation Between Lewis Clark and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both Lewis Clark and CCSB 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 Lewis Clark and CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lewis Clark Bancorp and CCSB Financial Corp, you can compare the effects of market volatilities on Lewis Clark and CCSB 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 Lewis Clark with a short position of CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lewis Clark and CCSB Financial.
Diversification Opportunities for Lewis Clark and CCSB Financial
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lewis and CCSB is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Lewis Clark Bancorp and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp and Lewis Clark 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 Lewis Clark Bancorp are associated (or correlated) with CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Lewis Clark i.e., Lewis Clark and CCSB Financial go up and down completely randomly.
Pair Corralation between Lewis Clark and CCSB Financial
Given the investment horizon of 90 days Lewis Clark Bancorp is expected to generate 1.39 times more return on investment than CCSB Financial. However, Lewis Clark is 1.39 times more volatile than CCSB Financial Corp. It trades about 0.22 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.04 per unit of risk. If you would invest 2,850 in Lewis Clark Bancorp on September 2, 2024 and sell it today you would earn a total of 150.00 from holding Lewis Clark Bancorp or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lewis Clark Bancorp vs. CCSB Financial Corp
Performance |
| Timeline |
| Lewis Clark Bancorp |
| CCSB Financial Corp |
Lewis Clark and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lewis Clark and CCSB Financial
The main advantage of trading using opposite Lewis Clark and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lewis Clark position performs unexpectedly, CCSB 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| Lewis Clark vs. China Clean Energy | Lewis Clark vs. Titan Machinery | Lewis Clark vs. Tradeweb Markets | Lewis Clark vs. Simon Property Group |
| CCSB Financial vs. HUMANA INC | CCSB Financial vs. SCOR PK | CCSB Financial vs. Aquagold International | CCSB Financial vs. Thrivent High Yield |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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