Correlation Between TrustCo Bank and Cnb Community
Can any of the company-specific risk be diversified away by investing in both TrustCo Bank 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 TrustCo Bank and Cnb Community 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 Cnb Community Bancorp, you can compare the effects of market volatilities on TrustCo Bank 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 TrustCo Bank with a short position of Cnb Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrustCo Bank and Cnb Community.
Diversification Opportunities for TrustCo Bank and Cnb Community
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TrustCo and Cnb is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding TrustCo Bank Corp 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 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 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 TrustCo Bank i.e., TrustCo Bank and Cnb Community go up and down completely randomly.
Pair Corralation between TrustCo Bank and Cnb Community
If you would invest 4,101 in Cnb Community Bancorp on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Cnb Community Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
TrustCo Bank Corp vs. Cnb Community Bancorp
Performance |
| Timeline |
| TrustCo Bank Corp |
| Cnb Community Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
TrustCo Bank and Cnb Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TrustCo Bank and Cnb Community
The main advantage of trading using opposite TrustCo Bank and Cnb Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrustCo Bank 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.| TrustCo Bank vs. Southern Missouri Bancorp | TrustCo Bank vs. IF Bancorp | TrustCo Bank vs. Colony Bankcorp | TrustCo Bank vs. Old Point Financial |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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