Correlation Between California Resources and Pioneer Bancorp

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

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

Diversification Opportunities for California Resources and Pioneer Bancorp

0.0

Correlation Coefficient

California Resources  Pioneer Bancorp

Pay attention - limited upside

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

Pair Corralation between California Resources and Pioneer Bancorp

If you would invest  1,132  in Pioneer Bancorp on December 22, 2024 and sell it today you would earn a total of  36.00  from holding Pioneer Bancorp or generate 3.18% return on investment over 90 days.

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

California Resources  vs.  Pioneer Bancorp

California Resources

Risk-Adjusted Performance

Very Weak

Over the last 90 days California Resources has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, California Resources is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pioneer Bancorp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Bancorp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Pioneer Bancorp is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with California Resources and Pioneer Bancorp

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

The idea behind California Resources and Pioneer 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.