Correlation Between First IC and Cincinnati Bancorp

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

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

Diversification Opportunities for First IC and Cincinnati Bancorp

0.0

Correlation Coefficient

First IC  Cincinnati Bancorp

Pay attention - limited upside

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

Pair Corralation between First IC and Cincinnati Bancorp

If you would invest  1,661  in Cincinnati Bancorp on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Cincinnati Bancorp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

First IC  vs.  Cincinnati Bancorp

First IC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days First IC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, First IC is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Cincinnati Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with First IC and Cincinnati Bancorp

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

The idea behind First IC and Cincinnati 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 CEOs Directory module to screen CEOs from public companies around the world.