Correlation Between Astra International and CCFNB Bancorp
Can any of the company-specific risk be diversified away by investing in both Astra International 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 Astra International and CCFNB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra International Tbk and CCFNB Bancorp, you can compare the effects of market volatilities on Astra International 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 Astra International with a short position of CCFNB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra International and CCFNB Bancorp.
Diversification Opportunities for Astra International and CCFNB Bancorp
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astra and CCFNB is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Astra International Tbk and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp and Astra International 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 Astra International Tbk 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 Astra International i.e., Astra International and CCFNB Bancorp go up and down completely randomly.
Pair Corralation between Astra International and CCFNB Bancorp
Assuming the 90 days horizon Astra International Tbk is expected to under-perform the CCFNB Bancorp. In addition to that, Astra International is 1.18 times more volatile than CCFNB Bancorp. It trades about -0.04 of its total potential returns per unit of risk. CCFNB Bancorp is currently generating about 0.26 per unit of volatility. If you would invest 3,458 in CCFNB Bancorp on September 3, 2024 and sell it today you would earn a total of 392.00 from holding CCFNB Bancorp or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Astra International Tbk vs. CCFNB Bancorp
Performance |
| Timeline |
| Astra International Tbk |
| CCFNB Bancorp |
Astra International and CCFNB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra International and CCFNB Bancorp
The main advantage of trading using opposite Astra International and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra International 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.| Astra International vs. Allison Transmission Holdings | Astra International vs. Luminar Technologies | Astra International vs. Lear Corporation | Astra International vs. BorgWarner |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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