Correlation Between Plumas Bancorp and Cnb Community
Can any of the company-specific risk be diversified away by investing in both Plumas Bancorp 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 Plumas Bancorp and Cnb Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plumas Bancorp and Cnb Community Bancorp, you can compare the effects of market volatilities on Plumas Bancorp 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 Plumas Bancorp with a short position of Cnb Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plumas Bancorp and Cnb Community.
Diversification Opportunities for Plumas Bancorp and Cnb Community
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Plumas and Cnb is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Plumas Bancorp 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 Plumas Bancorp 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 Plumas Bancorp 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 Plumas Bancorp i.e., Plumas Bancorp and Cnb Community go up and down completely randomly.
Pair Corralation between Plumas Bancorp and Cnb Community
If you would invest 4,554 in Plumas Bancorp on September 13, 2024 and sell it today you would earn a total of 331.00 from holding Plumas Bancorp or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Plumas Bancorp vs. Cnb Community Bancorp
Performance |
| Timeline |
| Plumas Bancorp |
| Cnb Community Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Plumas Bancorp and Cnb Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plumas Bancorp and Cnb Community
The main advantage of trading using opposite Plumas Bancorp and Cnb Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plumas Bancorp 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.| Plumas Bancorp vs. Comerica | Plumas Bancorp vs. Truist Financial Corp | Plumas Bancorp vs. Fifth Third Bancorp | Plumas Bancorp vs. Zions Bancorporation |
| Cnb Community vs. OptimumBank Holdings | Cnb Community vs. First National Bank | Cnb Community vs. TrustCo Bank Corp | Cnb Community vs. Inter Co Class |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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