Correlation Between Oconee Federal and CF Bankshares
Can any of the company-specific risk be diversified away by investing in both Oconee Federal and CF Bankshares 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 Oconee Federal and CF Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oconee Federal Financial and CF Bankshares, you can compare the effects of market volatilities on Oconee Federal and CF Bankshares 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 Oconee Federal with a short position of CF Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oconee Federal and CF Bankshares.
Diversification Opportunities for Oconee Federal and CF Bankshares
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Oconee and CFBK is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Oconee Federal Financial and CF Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Bankshares and Oconee Federal 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 Oconee Federal Financial are associated (or correlated) with CF Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Bankshares has no effect on the direction of Oconee Federal i.e., Oconee Federal and CF Bankshares go up and down completely randomly.
Pair Corralation between Oconee Federal and CF Bankshares
If you would invest 2,492 in CF Bankshares on August 24, 2024 and sell it today you would earn a total of 246.00 from holding CF Bankshares or generate 9.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Oconee Federal Financial vs. CF Bankshares
Performance |
| Timeline |
| Oconee Federal Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CF Bankshares |
Oconee Federal and CF Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oconee Federal and CF Bankshares
The main advantage of trading using opposite Oconee Federal and CF Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oconee Federal position performs unexpectedly, CF Bankshares 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 CF Bankshares will offset losses from the drop in CF Bankshares' long position.| Oconee Federal vs. Home Federal Bancorp | Oconee Federal vs. Community West Bancshares | Oconee Federal vs. Magyar Bancorp |
| CF Bankshares vs. Banco Bradesco SA | CF Bankshares vs. Itau Unibanco Banco | CF Bankshares vs. Banco Santander Brasil | CF Bankshares vs. Western Alliance Bancorporation |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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