Correlation Between NASB Financial and Coastal Carolina
Can any of the company-specific risk be diversified away by investing in both NASB Financial and Coastal Carolina 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 NASB Financial and Coastal Carolina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NASB Financial and Coastal Carolina Bancshares, you can compare the effects of market volatilities on NASB Financial and Coastal Carolina 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 NASB Financial with a short position of Coastal Carolina. Check out your portfolio center. Please also check ongoing floating volatility patterns of NASB Financial and Coastal Carolina.
Diversification Opportunities for NASB Financial and Coastal Carolina
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NASB and Coastal is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding NASB Financial and Coastal Carolina Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coastal Carolina Ban and NASB 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 NASB Financial are associated (or correlated) with Coastal Carolina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Carolina Ban has no effect on the direction of NASB Financial i.e., NASB Financial and Coastal Carolina go up and down completely randomly.
Pair Corralation between NASB Financial and Coastal Carolina
If you would invest 1,000.00 in Coastal Carolina Bancshares on August 29, 2024 and sell it today you would earn a total of 140.00 from holding Coastal Carolina Bancshares or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
NASB Financial vs. Coastal Carolina Bancshares
Performance |
| Timeline |
| NASB Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Coastal Carolina Ban |
NASB Financial and Coastal Carolina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NASB Financial and Coastal Carolina
The main advantage of trading using opposite NASB Financial and Coastal Carolina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NASB Financial position performs unexpectedly, Coastal Carolina 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 Coastal Carolina will offset losses from the drop in Coastal Carolina's long position.| NASB Financial vs. First Bankers Trustshares | NASB Financial vs. Greenville Federal Financial | NASB Financial vs. First Ottawa Bancshares | NASB Financial vs. Coastal Carolina Bancshares |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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