Correlation Between Sturgis Bancorp and CNB

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

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

Diversification Opportunities for Sturgis Bancorp and CNB

0.0

Correlation Coefficient

Sturgis Bancorp  CNB

Pay attention - limited upside

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

Pair Corralation between Sturgis Bancorp and CNB

If you would invest  1,719  in CNB Corporation on December 4, 2024 and sell it today you would earn a total of  81.00  from holding CNB Corporation or generate 4.71% return on investment over 90 days.

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

Sturgis Bancorp  vs.  CNB Corp.

Sturgis Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sturgis Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental drivers, Sturgis Bancorp is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

CNB Corporation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CNB Corporation are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating fundamental drivers, CNB may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Sturgis Bancorp and CNB

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

The idea behind Sturgis Bancorp and CNB Corporation 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.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.