Correlation Between CCSB Financial and Apollo Bancorp

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

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

Diversification Opportunities for CCSB Financial and Apollo Bancorp

0.26

Correlation Coefficient

CCSB Financial  Apollo Bancorp

Modest diversification

The 3 months correlation between CCSB and Apollo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and CCSB Financial 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 CCSB Financial Corp are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of CCSB Financial i.e., CCSB Financial and Apollo Bancorp go up and down completely randomly.

Pair Corralation between CCSB Financial and Apollo Bancorp

Given the investment horizon of 90 days CCSB Financial Corp is expected to under-perform the Apollo Bancorp. But the pink sheet apears to be less risky and, when comparing its historical volatility, CCSB Financial Corp is 1.0 times less risky than Apollo Bancorp. The pink sheet trades about -0.13 of its potential returns per unit of risk. The Apollo Bancorp is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  3,890  in Apollo Bancorp on August 31, 2024 and sell it today you would lose (190.00) from holding Apollo Bancorp or give up 4.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

CCSB Financial Corp  vs.  Apollo Bancorp

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 latest inconsistent performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Apollo Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apollo Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Apollo Bancorp is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CCSB Financial and Apollo Bancorp

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

The idea behind CCSB Financial Corp and Apollo 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.