Correlation Between TrustCo Bank and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both TrustCo Bank and CCSB Financial 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 TrustCo Bank and CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TrustCo Bank Corp and CCSB Financial Corp, you can compare the effects of market volatilities on TrustCo Bank and CCSB Financial 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 TrustCo Bank with a short position of CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrustCo Bank and CCSB Financial.
Diversification Opportunities for TrustCo Bank and CCSB Financial
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between TrustCo and CCSB is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding TrustCo Bank Corp and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp and TrustCo Bank 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 TrustCo Bank Corp are associated (or correlated) with CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of TrustCo Bank i.e., TrustCo Bank and CCSB Financial go up and down completely randomly.
Pair Corralation between TrustCo Bank and CCSB Financial
Given the investment horizon of 90 days TrustCo Bank Corp is expected to generate 1.11 times more return on investment than CCSB Financial. However, TrustCo Bank is 1.11 times more volatile than CCSB Financial Corp. It trades about -0.02 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.04 per unit of risk. If you would invest 3,668 in TrustCo Bank Corp on September 13, 2024 and sell it today you would lose (17.00) from holding TrustCo Bank Corp or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TrustCo Bank Corp vs. CCSB Financial Corp
Performance |
| Timeline |
| TrustCo Bank Corp |
| CCSB Financial Corp |
TrustCo Bank and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TrustCo Bank and CCSB Financial
The main advantage of trading using opposite TrustCo Bank and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrustCo Bank position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| TrustCo Bank vs. Southern Missouri Bancorp | TrustCo Bank vs. IF Bancorp | TrustCo Bank vs. Colony Bankcorp | TrustCo Bank vs. Old Point Financial |
| CCSB Financial vs. Weibo Corp | CCSB Financial vs. Procter Gamble | CCSB Financial vs. Integral Ad Science | CCSB Financial vs. Toro Co |
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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