Correlation Between Cortland Bancorp and First Financial
Can any of the company-specific risk be diversified away by investing in both Cortland Bancorp and First 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 Cortland Bancorp and First Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cortland Bancorp and First Financial Bancorp, you can compare the effects of market volatilities on Cortland Bancorp and First 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 Cortland Bancorp with a short position of First Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cortland Bancorp and First Financial.
Diversification Opportunities for Cortland Bancorp and First Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cortland and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cortland Bancorp and First Financial Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Financial Bancorp and Cortland 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 Cortland Bancorp are associated (or correlated) with First Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Financial Bancorp has no effect on the direction of Cortland Bancorp i.e., Cortland Bancorp and First Financial go up and down completely randomly.
Pair Corralation between Cortland Bancorp and First Financial
If you would invest 1,932 in First Financial Bancorp on January 25, 2024 and sell it today you would earn a total of 323.00 from holding First Financial Bancorp or generate 16.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cortland Bancorp vs. First Financial Bancorp
Performance |
| Timeline |
| Cortland Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Financial Bancorp |
Cortland Bancorp and First Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cortland Bancorp and First Financial
The main advantage of trading using opposite Cortland Bancorp and First Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cortland Bancorp position performs unexpectedly, First 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 First Financial will offset losses from the drop in First Financial's long position.| Cortland Bancorp vs. Western Digital | Cortland Bancorp vs. Valneva SE ADR | Cortland Bancorp vs. Mannatech Incorporated | Cortland Bancorp vs. Procter Gamble |
| First Financial vs. Home Bancorp | First Financial vs. Heritage Financial | First Financial vs. First Northwest Bancorp | First Financial vs. HomeTrust Bancshares |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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