| CBNK Stock | | | USD 29.32 0.97 3.42% |
The current 90-days correlation between Capital Bancorp and HomeTrust Bancshares is 0.83 (i.e., Very poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Capital Bancorp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Capital Bancorp moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
Capital Bancorp Correlation With Market
Poor diversification
The correlation between Capital Bancorp and DJI is 0.72 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Capital Bancorp and DJI in the same portfolio, assuming nothing else is changed.
Check out
Trending Equities to better understand how to build diversified portfolios, which includes a position in Capital Bancorp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in board of governors.
For more information on how to buy Capital Stock please use our
How to buy in Capital Stock guide.
Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations | | High negative correlations |
Risk-Adjusted IndicatorsThere is a big difference between Capital Stock performing well and Capital Bancorp Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Capital Bancorp's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.