Correlation Between LCNB and Oconee Federal
Can any of the company-specific risk be diversified away by investing in both LCNB and Oconee Federal 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 LCNB and Oconee Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LCNB Corporation and Oconee Federal Financial, you can compare the effects of market volatilities on LCNB and Oconee Federal 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 LCNB with a short position of Oconee Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of LCNB and Oconee Federal.
Diversification Opportunities for LCNB and Oconee Federal
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LCNB and Oconee is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding LCNB Corp. and Oconee Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oconee Federal Financial and LCNB 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 LCNB Corporation are associated (or correlated) with Oconee Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oconee Federal Financial has no effect on the direction of LCNB i.e., LCNB and Oconee Federal go up and down completely randomly.
Pair Corralation between LCNB and Oconee Federal
If you would invest 1,579 in LCNB Corporation on September 14, 2024 and sell it today you would earn a total of 107.00 from holding LCNB Corporation or generate 6.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 1.59% |
Values | Daily Returns |
LCNB Corp. vs. Oconee Federal Financial
Performance |
Timeline |
LCNB |
Oconee Federal Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LCNB and Oconee Federal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LCNB and Oconee Federal
The main advantage of trading using opposite LCNB and Oconee Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LCNB position performs unexpectedly, Oconee Federal 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 Oconee Federal will offset losses from the drop in Oconee Federal's long position.LCNB vs. Affinity Bancshares | LCNB vs. Main Street Financial | LCNB vs. Mainstreet Bank | LCNB vs. Oak Valley Bancorp |
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Check out your portfolio center.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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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