Correlation Between Peoples Fin and Cullman Bancorp
Can any of the company-specific risk be diversified away by investing in both Peoples Fin 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 Peoples Fin and Cullman Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peoples Fin and Cullman Bancorp, you can compare the effects of market volatilities on Peoples Fin 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 Peoples Fin with a short position of Cullman Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples Fin and Cullman Bancorp.
Diversification Opportunities for Peoples Fin and Cullman Bancorp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Peoples and Cullman is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Peoples Fin and Cullman Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullman Bancorp and Peoples Fin 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 Peoples Fin 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 Peoples Fin i.e., Peoples Fin and Cullman Bancorp go up and down completely randomly.
Pair Corralation between Peoples Fin and Cullman Bancorp
If you would invest 5,014 in Peoples Fin on November 4, 2024 and sell it today you would earn a total of 124.00 from holding Peoples Fin or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Peoples Fin vs. Cullman Bancorp
Performance |
| Timeline |
| Peoples Fin |
| Cullman Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Peoples Fin and Cullman Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples Fin and Cullman Bancorp
The main advantage of trading using opposite Peoples Fin and Cullman Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples Fin 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.| Peoples Fin vs. Home Federal Bancorp | Peoples Fin vs. Magyar Bancorp | Peoples Fin vs. Finward Bancorp | Peoples Fin vs. Community West Bancshares |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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