Correlation Between Bank Central and Croghan Bancshares
Can any of the company-specific risk be diversified away by investing in both Bank Central and Croghan Bancshares 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 Croghan Bancshares 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 Croghan Bancshares, you can compare the effects of market volatilities on Bank Central and Croghan Bancshares 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 Croghan Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and Croghan Bancshares.
Diversification Opportunities for Bank Central and Croghan Bancshares
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Croghan is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and Croghan Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Croghan Bancshares 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 Croghan Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Croghan Bancshares has no effect on the direction of Bank Central i.e., Bank Central and Croghan Bancshares go up and down completely randomly.
Pair Corralation between Bank Central and Croghan Bancshares
Assuming the 90 days horizon Bank Central Asia is expected to generate 1.18 times more return on investment than Croghan Bancshares. However, Bank Central is 1.18 times more volatile than Croghan Bancshares. It trades about 0.04 of its potential returns per unit of risk. Croghan Bancshares is currently generating about 0.04 per unit of risk. If you would invest 1,379 in Bank Central Asia on September 3, 2024 and sell it today you would earn a total of 202.00 from holding Bank Central Asia or generate 14.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 87.04% |
| Values | Daily Returns |
Bank Central Asia vs. Croghan Bancshares
Performance |
| Timeline |
| Bank Central Asia |
| Croghan Bancshares |
Bank Central and Croghan Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and Croghan Bancshares
The main advantage of trading using opposite Bank Central and Croghan Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, Croghan Bancshares 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 Croghan Bancshares will offset losses from the drop in Croghan Bancshares' 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 |
| Croghan Bancshares vs. PGE Corp | Croghan Bancshares vs. Empresa Distribuidora y | Croghan Bancshares vs. Artisan Partners Asset | Croghan Bancshares vs. WEC Energy Group |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |