Correlation Between Coastal Carolina and CCFNB Bancorp

Can any of the company-specific risk be diversified away by investing in both Coastal Carolina and CCFNB 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 Coastal Carolina and CCFNB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coastal Carolina Bancshares and CCFNB Bancorp, you can compare the effects of market volatilities on Coastal Carolina and CCFNB 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 Coastal Carolina with a short position of CCFNB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coastal Carolina and CCFNB Bancorp.

Diversification Opportunities for Coastal Carolina and CCFNB Bancorp

0.0

Correlation Coefficient

Coastal Carolina  CCFNB Bancorp

Pay attention - limited upside

The 3 months correlation between Coastal and CCFNB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coastal Carolina Bancshares and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp and Coastal Carolina 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 Coastal Carolina Bancshares are associated (or correlated) with CCFNB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCFNB Bancorp has no effect on the direction of Coastal Carolina i.e., Coastal Carolina and CCFNB Bancorp go up and down completely randomly.

Pair Corralation between Coastal Carolina and CCFNB Bancorp

If you would invest (100.00) in CCFNB Bancorp on October 4, 2024 and sell it today you would earn a total of  100.00  from holding CCFNB Bancorp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Coastal Carolina Bancshares  vs.  CCFNB Bancorp

Coastal Carolina Ban

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Coastal Carolina Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Coastal Carolina is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CCFNB Bancorp

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CCFNB Bancorp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, CCFNB Bancorp displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Coastal Carolina and CCFNB Bancorp

The main advantage of trading using opposite Coastal Carolina and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coastal Carolina position performs unexpectedly, CCFNB 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 CCFNB Bancorp will offset losses from the drop in CCFNB Bancorp's long position.

The idea behind Coastal Carolina Bancshares and CCFNB Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.