Correlation Between United Tennessee and CCSB Financial

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

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

Diversification Opportunities for United Tennessee and CCSB Financial

-0.43

Correlation Coefficient

United Tennessee  CCSB Financial

Very good diversification

The 3 months correlation between United and CCSB is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding United Tennessee Bankshares 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 United Tennessee 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 United Tennessee Bankshares 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 United Tennessee i.e., United Tennessee and CCSB Financial go up and down completely randomly.

Pair Corralation between United Tennessee and CCSB Financial

If you would invest  1,750  in United Tennessee Bankshares on September 13, 2024 and sell it today you would earn a total of  0.00  from holding United Tennessee Bankshares or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

United Tennessee Bankshares  vs.  CCSB Financial Corp

United Tennessee Ban

Risk-Adjusted Performance

0 of 100

Very Weak

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

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 rather sound technical and fundamental indicators, CCSB Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with United Tennessee and CCSB Financial

The main advantage of trading using opposite United Tennessee and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Tennessee 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 United Tennessee Bankshares 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..