Correlation Between OptimumBank Holdings and Cnb Community
Can any of the company-specific risk be diversified away by investing in both OptimumBank Holdings and Cnb Community 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 OptimumBank Holdings and Cnb Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OptimumBank Holdings and Cnb Community Bancorp, you can compare the effects of market volatilities on OptimumBank Holdings and Cnb Community 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 OptimumBank Holdings with a short position of Cnb Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of OptimumBank Holdings and Cnb Community.
Diversification Opportunities for OptimumBank Holdings and Cnb Community
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between OptimumBank and Cnb is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding OptimumBank Holdings and Cnb Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnb Community Bancorp and OptimumBank Holdings 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 OptimumBank Holdings are associated (or correlated) with Cnb Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnb Community Bancorp has no effect on the direction of OptimumBank Holdings i.e., OptimumBank Holdings and Cnb Community go up and down completely randomly.
Pair Corralation between OptimumBank Holdings and Cnb Community
If you would invest 383.00 in OptimumBank Holdings on September 12, 2024 and sell it today you would earn a total of 109.00 from holding OptimumBank Holdings or generate 28.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
OptimumBank Holdings vs. Cnb Community Bancorp
Performance |
| Timeline |
| OptimumBank Holdings |
| Cnb Community Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OptimumBank Holdings and Cnb Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OptimumBank Holdings and Cnb Community
The main advantage of trading using opposite OptimumBank Holdings and Cnb Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OptimumBank Holdings position performs unexpectedly, Cnb Community 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 Cnb Community will offset losses from the drop in Cnb Community's long position.| OptimumBank Holdings vs. First National Bank | OptimumBank Holdings vs. TrustCo Bank Corp | OptimumBank Holdings vs. Rhinebeck Bancorp | OptimumBank Holdings vs. Plumas Bancorp |
| Cnb Community vs. OptimumBank Holdings | Cnb Community vs. First National Bank | Cnb Community vs. TrustCo Bank Corp | Cnb Community vs. Alpine Banks of |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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