Correlation Between Vestis and CCSB Financial

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

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

Diversification Opportunities for Vestis and CCSB Financial

-0.43

Correlation Coefficient

Vestis  CCSB Financial

Very good diversification

The 3 months correlation between Vestis and CCSB is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Vestis and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp and Vestis 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 Vestis are associated (or correlated) with CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Vestis i.e., Vestis and CCSB Financial go up and down completely randomly.

Pair Corralation between Vestis and CCSB Financial

Given the investment horizon of 90 days Vestis is expected to generate 1.62 times more return on investment than CCSB Financial. However, Vestis is 1.62 times more volatile than CCSB Financial Corp. It trades about 0.01 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.01 per unit of risk. If you would invest  1,904  in Vestis on October 21, 2024 and sell it today you would lose (283.00) from holding Vestis or give up 14.86% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	66.53%
Values	Daily Returns

Vestis  vs.  CCSB Financial Corp

Vestis

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Vestis are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Vestis may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CCSB Financial Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CCSB Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Vestis and CCSB Financial

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

The idea behind Vestis and CCSB Financial Corp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.