Correlation Between Bank Central and CCFNB Bancorp
Can any of the company-specific risk be diversified away by investing in both Bank Central 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 Bank Central and CCFNB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and CCFNB Bancorp, you can compare the effects of market volatilities on Bank Central 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 Bank Central with a short position of CCFNB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and CCFNB Bancorp.
Diversification Opportunities for Bank Central and CCFNB Bancorp
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bank and CCFNB is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp and Bank Central 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 Bank Central Asia 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 Bank Central i.e., Bank Central and CCFNB Bancorp go up and down completely randomly.
Pair Corralation between Bank Central and CCFNB Bancorp
Assuming the 90 days horizon Bank Central Asia is expected to under-perform the CCFNB Bancorp. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Central Asia is 1.07 times less risky than CCFNB Bancorp. The pink sheet trades about -0.17 of its potential returns per unit of risk. The CCFNB Bancorp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,086 in CCFNB Bancorp on November 30, 2024 and sell it today you would earn a total of 120.00 from holding CCFNB Bancorp or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.56% |
| Values | Daily Returns |
Bank Central Asia vs. CCFNB Bancorp
Performance |
| Timeline |
| Bank Central Asia |
| CCFNB Bancorp |
Bank Central and CCFNB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and CCFNB Bancorp
The main advantage of trading using opposite Bank Central and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central 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.| Bank Central vs. Nedbank Group | Bank Central vs. Standard Bank Group | Bank Central vs. Kasikornbank Public Co | Bank Central vs. KBC Groep NV |
| CCFNB Bancorp vs. Susquehanna Community Financial | CCFNB Bancorp vs. Mifflinburg Bancorp | CCFNB Bancorp vs. Woodlands Financial Services | CCFNB Bancorp vs. Penns Woods 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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