Correlation Between Bank Negara and CCFNB Bancorp
Can any of the company-specific risk be diversified away by investing in both Bank Negara and CCFNB 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 Bank Negara and CCFNB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Negara Indonesia and CCFNB Bancorp, you can compare the effects of market volatilities on Bank Negara and CCFNB 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 Bank Negara with a short position of CCFNB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Negara and CCFNB Bancorp.
Diversification Opportunities for Bank Negara and CCFNB Bancorp
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and CCFNB is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bank Negara Indonesia and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp and Bank Negara 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 Bank Negara Indonesia are associated (or correlated) with CCFNB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCFNB Bancorp has no effect on the direction of Bank Negara i.e., Bank Negara and CCFNB Bancorp go up and down completely randomly.
Pair Corralation between Bank Negara and CCFNB Bancorp
Assuming the 90 days horizon Bank Negara Indonesia is expected to under-perform the CCFNB Bancorp. In addition to that, Bank Negara is 3.65 times more volatile than CCFNB Bancorp. It trades about -0.03 of its total potential returns per unit of risk. CCFNB Bancorp is currently generating about -0.01 per unit of volatility. If you would invest 4,255 in CCFNB Bancorp on December 2, 2024 and sell it today you would lose (49.00) from holding CCFNB Bancorp or give up 1.15% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
Bank Negara Indonesia vs. CCFNB Bancorp
Performance |
Timeline |
Bank Negara Indonesia |
CCFNB Bancorp |
Bank Negara and CCFNB Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank Negara and CCFNB Bancorp
The main advantage of trading using opposite Bank Negara and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Negara position performs unexpectedly, CCFNB 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 CCFNB Bancorp will offset losses from the drop in CCFNB Bancorp's long position.Bank Negara vs. Banco Bradesco SA | Bank Negara vs. Itau Unibanco Banco | Bank Negara vs. Lloyds Banking Group | Bank Negara vs. Deutsche Bank AG |
CCFNB Bancorp vs. Susquehanna Community Financial | CCFNB Bancorp vs. Mifflinburg Bancorp | CCFNB Bancorp vs. Woodlands Financial Services | CCFNB Bancorp vs. Penns Woods Bancorp |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |