Correlation Between CCSB Financial and Ballston Spa
Can any of the company-specific risk be diversified away by investing in both CCSB Financial and Ballston Spa 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 CCSB Financial and Ballston Spa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCSB Financial Corp and Ballston Spa Bancorp, you can compare the effects of market volatilities on CCSB Financial and Ballston Spa 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 CCSB Financial with a short position of Ballston Spa. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Ballston Spa.
Diversification Opportunities for CCSB Financial and Ballston Spa
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CCSB and Ballston is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Ballston Spa Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ballston Spa Bancorp and CCSB Financial 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 CCSB Financial Corp are associated (or correlated) with Ballston Spa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ballston Spa Bancorp has no effect on the direction of CCSB Financial i.e., CCSB Financial and Ballston Spa go up and down completely randomly.
Pair Corralation between CCSB Financial and Ballston Spa
Given the investment horizon of 90 days CCSB Financial Corp is expected to under-perform the Ballston Spa. In addition to that, CCSB Financial is 4.25 times more volatile than Ballston Spa Bancorp. It trades about -0.01 of its total potential returns per unit of risk. Ballston Spa Bancorp is currently generating about 0.15 per unit of volatility. If you would invest 4,946 in Ballston Spa Bancorp on September 23, 2024 and sell it today you would earn a total of 780.00 from holding Ballston Spa Bancorp or generate 15.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 56.3% |
Values | Daily Returns |
CCSB Financial Corp vs. Ballston Spa Bancorp
Performance |
Timeline |
CCSB Financial Corp |
Ballston Spa Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
CCSB Financial and Ballston Spa Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CCSB Financial and Ballston Spa
The main advantage of trading using opposite CCSB Financial and Ballston Spa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCSB Financial position performs unexpectedly, Ballston Spa 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 Ballston Spa will offset losses from the drop in Ballston Spa's long position.CCSB Financial vs. PSB Holdings | CCSB Financial vs. Citizens Financial Corp | CCSB Financial vs. Farmers Bancorp | CCSB Financial vs. Alpine Banks of |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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