Correlation Between United Community and CNB Financial
Can any of the company-specific risk be diversified away by investing in both United Community and CNB 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 United Community and CNB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Community Banks and CNB Financial, you can compare the effects of market volatilities on United Community and CNB 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 United Community with a short position of CNB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Community and CNB Financial.
Diversification Opportunities for United Community and CNB Financial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and CNB is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding United Community Banks and CNB Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNB Financial and United Community 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 United Community Banks are associated (or correlated) with CNB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNB Financial has no effect on the direction of United Community i.e., United Community and CNB Financial go up and down completely randomly.
Pair Corralation between United Community and CNB Financial
If you would invest 2,442 in CNB Financial on August 28, 2024 and sell it today you would earn a total of 53.00 from holding CNB Financial or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
United Community Banks vs. CNB Financial
Performance |
| Timeline |
| United Community Banks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CNB Financial |
United Community and CNB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Community and CNB Financial
The main advantage of trading using opposite United Community and CNB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Community position performs unexpectedly, CNB 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 CNB Financial will offset losses from the drop in CNB Financial's long position.| United Community vs. Pinnacle Financial Partners | United Community vs. Wintrust Financial Corp | United Community vs. Heartland Financial USA | United Community vs. OceanFirst Financial Corp |
| CNB Financial vs. Capital One Financial | CNB Financial vs. Capital One Financial | CNB Financial vs. Bank of America |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |