Correlation Between Coeur DAlene and Benchmark Bankshares

Can any of the company-specific risk be diversified away by investing in both Coeur DAlene and Benchmark Bankshares 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 Coeur DAlene and Benchmark Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Coeur dAlene Bancorp and Benchmark Bankshares, you can compare the effects of market volatilities on Coeur DAlene and Benchmark Bankshares 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 Coeur DAlene with a short position of Benchmark Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coeur DAlene and Benchmark Bankshares.

Diversification Opportunities for Coeur DAlene and Benchmark Bankshares

0.0

Correlation Coefficient

Coeur DAlene  Benchmark Bankshares

Pay attention - limited upside

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

Pair Corralation between Coeur DAlene and Benchmark Bankshares

If you would invest  1,066  in Coeur dAlene Bancorp on October 7, 2024 and sell it today you would earn a total of  613.00  from holding Coeur dAlene Bancorp or generate 57.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Coeur dAlene Bancorp  vs.  Benchmark Bankshares

Coeur dAlene Bancorp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Coeur dAlene Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Coeur DAlene may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Benchmark Bankshares

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Benchmark Bankshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, Benchmark Bankshares is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Coeur DAlene and Benchmark Bankshares

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

The idea behind Coeur dAlene Bancorp and Benchmark Bankshares 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.