Correlation Between Muncy Bank and CCFNB Bancorp
Can any of the company-specific risk be diversified away by investing in both Muncy Bank 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 Muncy Bank and CCFNB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Muncy Bank Financial and CCFNB Bancorp, you can compare the effects of market volatilities on Muncy Bank 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 Muncy Bank with a short position of CCFNB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Muncy Bank and CCFNB Bancorp.
Diversification Opportunities for Muncy Bank and CCFNB Bancorp
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Muncy and CCFNB is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Muncy Bank Financial and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp and Muncy Bank 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 Muncy Bank Financial 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 Muncy Bank i.e., Muncy Bank and CCFNB Bancorp go up and down completely randomly.
Pair Corralation between Muncy Bank and CCFNB Bancorp
Given the investment horizon of 90 days Muncy Bank Financial is expected to generate 0.71 times more return on investment than CCFNB Bancorp. However, Muncy Bank Financial is 1.41 times less risky than CCFNB Bancorp. It trades about 0.14 of its potential returns per unit of risk. CCFNB Bancorp is currently generating about 0.02 per unit of risk. If you would invest 3,238 in Muncy Bank Financial on August 29, 2024 and sell it today you would earn a total of 567.00 from holding Muncy Bank Financial or generate 17.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 17.03% |
| Values | Daily Returns |
Muncy Bank Financial vs. CCFNB Bancorp
Performance |
| Timeline |
| Muncy Bank Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CCFNB Bancorp |
Muncy Bank and CCFNB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Muncy Bank and CCFNB Bancorp
The main advantage of trading using opposite Muncy Bank and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Muncy Bank 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.| Muncy Bank vs. Main Street Financial | Muncy Bank vs. Susquehanna Community Financial | Muncy Bank vs. First Keystone Corp | Muncy Bank vs. Mifflinburg Bancorp |
| CCFNB Bancorp vs. Invesco High Income | CCFNB Bancorp vs. Blackrock Muniholdings Ny | CCFNB Bancorp vs. MFS Investment Grade | CCFNB Bancorp vs. Federated Premier Municipal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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