Correlation Between Ottawa Savings and Cullman Bancorp
Can any of the company-specific risk be diversified away by investing in both Ottawa Savings and Cullman 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 Ottawa Savings and Cullman Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ottawa Savings Bancorp and Cullman Bancorp, you can compare the effects of market volatilities on Ottawa Savings and Cullman 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 Ottawa Savings with a short position of Cullman Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ottawa Savings and Cullman Bancorp.
Diversification Opportunities for Ottawa Savings and Cullman Bancorp
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ottawa and Cullman is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ottawa Savings Bancorp and Cullman Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullman Bancorp and Ottawa Savings 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 Ottawa Savings Bancorp are associated (or correlated) with Cullman Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullman Bancorp has no effect on the direction of Ottawa Savings i.e., Ottawa Savings and Cullman Bancorp go up and down completely randomly.
Pair Corralation between Ottawa Savings and Cullman Bancorp
If you would invest 971.00 in Cullman Bancorp on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Cullman Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ottawa Savings Bancorp vs. Cullman Bancorp
Performance |
| Timeline |
| Ottawa Savings Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ottawa Savings and Cullman Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ottawa Savings and Cullman Bancorp
The main advantage of trading using opposite Ottawa Savings and Cullman Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ottawa Savings position performs unexpectedly, Cullman 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 Cullman Bancorp will offset losses from the drop in Cullman Bancorp's long position.| Ottawa Savings vs. Lake Shore Bancorp | Ottawa Savings vs. IF Bancorp | Ottawa Savings vs. Home Federal Bancorp |
| Cullman Bancorp vs. Home Federal Bancorp | Cullman Bancorp vs. Lake Shore Bancorp | Cullman Bancorp vs. Community West Bancshares | Cullman Bancorp vs. Magyar 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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