Correlation Between Richmond Mutual and Cambridge Bancorp
Can any of the company-specific risk be diversified away by investing in both Richmond Mutual and Cambridge 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 Richmond Mutual and Cambridge Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Richmond Mutual Bancorporation and Cambridge Bancorp, you can compare the effects of market volatilities on Richmond Mutual and Cambridge 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 Richmond Mutual with a short position of Cambridge Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Richmond Mutual and Cambridge Bancorp.
Diversification Opportunities for Richmond Mutual and Cambridge Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Richmond and Cambridge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Richmond Mutual Bancorp. and Cambridge Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambridge Bancorp and Richmond Mutual 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 Richmond Mutual Bancorporation are associated (or correlated) with Cambridge Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambridge Bancorp has no effect on the direction of Richmond Mutual i.e., Richmond Mutual and Cambridge Bancorp go up and down completely randomly.
Pair Corralation between Richmond Mutual and Cambridge Bancorp
If you would invest (100.00) in Cambridge Bancorp on January 14, 2025 and sell it today you would earn a total of 100.00 from holding Cambridge Bancorp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Richmond Mutual Bancorp. vs. Cambridge Bancorp
Performance |
| Timeline |
| Richmond Mutual Banc |
| Cambridge Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Richmond Mutual and Cambridge Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Richmond Mutual and Cambridge Bancorp
The main advantage of trading using opposite Richmond Mutual and Cambridge Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Richmond Mutual position performs unexpectedly, Cambridge 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 Cambridge Bancorp will offset losses from the drop in Cambridge Bancorp's long position.| Richmond Mutual vs. Rhinebeck Bancorp | Richmond Mutual vs. Magyar Bancorp | Richmond Mutual vs. Community West Bancshares | Richmond Mutual vs. First Financial Northwest |
| Cambridge Bancorp vs. First Community | Cambridge Bancorp vs. Community West Bancshares | Cambridge Bancorp vs. First Financial Northwest | Cambridge Bancorp vs. First Northwest 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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