Correlation Between Canadian Imperial and Cortland Bancorp
Can any of the company-specific risk be diversified away by investing in both Canadian Imperial and Cortland 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 Canadian Imperial and Cortland Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Imperial Bank and Cortland Bancorp, you can compare the effects of market volatilities on Canadian Imperial and Cortland 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 Canadian Imperial with a short position of Cortland Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canadian Imperial and Cortland Bancorp.
Diversification Opportunities for Canadian Imperial and Cortland Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Canadian and Cortland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Imperial Bank and Cortland Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cortland Bancorp and Canadian Imperial 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 Canadian Imperial Bank are associated (or correlated) with Cortland Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cortland Bancorp has no effect on the direction of Canadian Imperial i.e., Canadian Imperial and Cortland Bancorp go up and down completely randomly.
Pair Corralation between Canadian Imperial and Cortland Bancorp
If you would invest 4,647 in Canadian Imperial Bank on December 29, 2023 and sell it today you would earn a total of 360.00 from holding Canadian Imperial Bank or generate 7.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Canadian Imperial Bank vs. Cortland Bancorp
Performance |
Timeline |
Canadian Imperial Bank |
Cortland Bancorp |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Canadian Imperial and Cortland Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Canadian Imperial and Cortland Bancorp
The main advantage of trading using opposite Canadian Imperial and Cortland Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canadian Imperial position performs unexpectedly, Cortland 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 Cortland Bancorp will offset losses from the drop in Cortland Bancorp's long position.Canadian Imperial vs. Bank Of America | Canadian Imperial vs. Deckers Outdoor | Canadian Imperial vs. Intuitive Machines | Canadian Imperial vs. Liberty Interactive LLC |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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