Correlation Between Coastal Carolina and Schweizerische Nationalbank

Can any of the company-specific risk be diversified away by investing in both Coastal Carolina and Schweizerische Nationalbank 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 Schweizerische Nationalbank 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 Schweizerische Nationalbank, you can compare the effects of market volatilities on Coastal Carolina and Schweizerische Nationalbank 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 Schweizerische Nationalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coastal Carolina and Schweizerische Nationalbank.

Diversification Opportunities for Coastal Carolina and Schweizerische Nationalbank

-0.79

Correlation Coefficient

Coastal Carolina  Schweizerische Nationalbank

Pay attention - limited upside

The 3 months correlation between Coastal and Schweizerische is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Coastal Carolina Bancshares and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank 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 Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Coastal Carolina i.e., Coastal Carolina and Schweizerische Nationalbank go up and down completely randomly.

Pair Corralation between Coastal Carolina and Schweizerische Nationalbank

Given the investment horizon of 90 days Coastal Carolina is expected to generate 11.38 times less return on investment than Schweizerische Nationalbank. But when comparing it to its historical volatility, Coastal Carolina Bancshares is 1.82 times less risky than Schweizerische Nationalbank. It trades about 0.05 of its potential returns per unit of risk. Schweizerische Nationalbank is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  353,738  in Schweizerische Nationalbank on October 21, 2024 and sell it today you would earn a total of  23,790  from holding Schweizerische Nationalbank or generate 6.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Coastal Carolina Bancshares  vs.  Schweizerische Nationalbank

Coastal Carolina Ban

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Coastal Carolina Bancshares are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Coastal Carolina may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Schweizerische Nationalbank

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Schweizerische Nationalbank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Coastal Carolina and Schweizerische Nationalbank

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

The idea behind Coastal Carolina Bancshares and Schweizerische Nationalbank 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 CEOs Directory module to screen CEOs from public companies around the world.