Correlation Between CCSB Financial and Communities First

Can any of the company-specific risk be diversified away by investing in both CCSB Financial and Communities First 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 Communities First 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 Communities First Financial, you can compare the effects of market volatilities on CCSB Financial and Communities First 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 Communities First. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Communities First.

Diversification Opportunities for CCSB Financial and Communities First

0.14

Correlation Coefficient

CCSB Financial  Communities First

Average diversification

The 3 months correlation between CCSB and Communities is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Communities First Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Communities First 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 Communities First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Communities First has no effect on the direction of CCSB Financial i.e., CCSB Financial and Communities First go up and down completely randomly.

Pair Corralation between CCSB Financial and Communities First

If you would invest  6,800  in Communities First Financial on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Communities First Financial or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

CCSB Financial Corp  vs.  Communities First Financial

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 weak 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.

Communities First

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Communities First Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Communities First is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CCSB Financial and Communities First

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

The idea behind CCSB Financial Corp and Communities First Financial 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.