Correlation Between Monopar Therapeutics and CCFNB Bancorp
Can any of the company-specific risk be diversified away by investing in both Monopar Therapeutics and CCFNB Bancorp 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 Monopar Therapeutics and CCFNB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monopar Therapeutics and CCFNB Bancorp, you can compare the effects of market volatilities on Monopar Therapeutics and CCFNB Bancorp 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 Monopar Therapeutics with a short position of CCFNB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monopar Therapeutics and CCFNB Bancorp.
Diversification Opportunities for Monopar Therapeutics and CCFNB Bancorp
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Monopar and CCFNB is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Monopar Therapeutics and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp and Monopar Therapeutics 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 Monopar Therapeutics are associated (or correlated) with CCFNB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCFNB Bancorp has no effect on the direction of Monopar Therapeutics i.e., Monopar Therapeutics and CCFNB Bancorp go up and down completely randomly.
Pair Corralation between Monopar Therapeutics and CCFNB Bancorp
Given the investment horizon of 90 days Monopar Therapeutics is expected to generate 15.32 times more return on investment than CCFNB Bancorp. However, Monopar Therapeutics is 15.32 times more volatile than CCFNB Bancorp. It trades about 0.08 of its potential returns per unit of risk. CCFNB Bancorp is currently generating about 0.06 per unit of risk. If you would invest 189.00 in Monopar Therapeutics on November 5, 2024 and sell it today you would earn a total of 4,205 from holding Monopar Therapeutics or generate 2224.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 86.81% |
| Values | Daily Returns |
Monopar Therapeutics vs. CCFNB Bancorp
Performance |
| Timeline |
| Monopar Therapeutics |
| CCFNB Bancorp |
Monopar Therapeutics and CCFNB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monopar Therapeutics and CCFNB Bancorp
The main advantage of trading using opposite Monopar Therapeutics and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monopar Therapeutics position performs unexpectedly, CCFNB Bancorp 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 CCFNB Bancorp will offset losses from the drop in CCFNB Bancorp's long position.| Monopar Therapeutics vs. Anebulo Pharmaceuticals | Monopar Therapeutics vs. Acrivon Therapeutics, Common | Monopar Therapeutics vs. Pmv Pharmaceuticals | Monopar Therapeutics vs. Molecular Partners AG |
| CCFNB Bancorp vs. Susquehanna Community Financial | CCFNB Bancorp vs. Mifflinburg Bancorp | CCFNB Bancorp vs. Woodlands Financial Services | CCFNB Bancorp vs. Penns Woods 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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