Correlation Between Uwharrie Capital and CCCB Bancorp
Can any of the company-specific risk be diversified away by investing in both Uwharrie Capital and CCCB 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 Uwharrie Capital and CCCB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uwharrie Capital Corp and CCCB Bancorp, you can compare the effects of market volatilities on Uwharrie Capital and CCCB 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 Uwharrie Capital with a short position of CCCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uwharrie Capital and CCCB Bancorp.
Diversification Opportunities for Uwharrie Capital and CCCB Bancorp
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Uwharrie and CCCB is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Uwharrie Capital Corp and CCCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCCB Bancorp and Uwharrie Capital 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 Uwharrie Capital Corp are associated (or correlated) with CCCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCCB Bancorp has no effect on the direction of Uwharrie Capital i.e., Uwharrie Capital and CCCB Bancorp go up and down completely randomly.
Pair Corralation between Uwharrie Capital and CCCB Bancorp
Given the investment horizon of 90 days Uwharrie Capital is expected to generate 1.09 times less return on investment than CCCB Bancorp. But when comparing it to its historical volatility, Uwharrie Capital Corp is 2.36 times less risky than CCCB Bancorp. It trades about 0.1 of its potential returns per unit of risk. CCCB Bancorp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 525.00 in CCCB Bancorp on September 1, 2024 and sell it today you would earn a total of 55.00 from holding CCCB Bancorp or generate 10.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Uwharrie Capital Corp vs. CCCB Bancorp
Performance |
| Timeline |
| Uwharrie Capital Corp |
| CCCB Bancorp |
Uwharrie Capital and CCCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uwharrie Capital and CCCB Bancorp
The main advantage of trading using opposite Uwharrie Capital and CCCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uwharrie Capital position performs unexpectedly, CCCB 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 CCCB Bancorp will offset losses from the drop in CCCB Bancorp's long position.| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie Bancorp |
| CCCB Bancorp vs. Piraeus Bank SA | CCCB Bancorp vs. Turkiye Garanti Bankasi | CCCB Bancorp vs. Delhi Bank Corp | CCCB Bancorp vs. Uwharrie Capital Corp |
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
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |