Correlation Between Commercial Bancshares and Farmers Merchants
Can any of the company-specific risk be diversified away by investing in both Commercial Bancshares and Farmers Merchants 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 Commercial Bancshares and Farmers Merchants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial Bancshares OH and Farmers Merchants Bancorp, you can compare the effects of market volatilities on Commercial Bancshares and Farmers Merchants 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 Commercial Bancshares with a short position of Farmers Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Bancshares and Farmers Merchants.
Diversification Opportunities for Commercial Bancshares and Farmers Merchants
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Commercial and Farmers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Bancshares OH and Farmers Merchants Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers Merchants Bancorp and Commercial Bancshares 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 Commercial Bancshares OH are associated (or correlated) with Farmers Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers Merchants Bancorp has no effect on the direction of Commercial Bancshares i.e., Commercial Bancshares and Farmers Merchants go up and down completely randomly.
Pair Corralation between Commercial Bancshares and Farmers Merchants
If you would invest (100.00) in Commercial Bancshares OH on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Commercial Bancshares OH or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Commercial Bancshares OH vs. Farmers Merchants Bancorp
Performance |
| Timeline |
| Commercial Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Farmers Merchants Bancorp |
Commercial Bancshares and Farmers Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial Bancshares and Farmers Merchants
The main advantage of trading using opposite Commercial Bancshares and Farmers Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial Bancshares position performs unexpectedly, Farmers Merchants 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 Farmers Merchants will offset losses from the drop in Farmers Merchants' long position.| Commercial Bancshares vs. Simon Property Group | Commercial Bancshares vs. Keurig Dr Pepper | Commercial Bancshares vs. Grocery Outlet Holding | Commercial Bancshares vs. The Coca Cola |
| Farmers Merchants vs. HMN Financial | Farmers Merchants vs. Lake Shore Bancorp | Farmers Merchants vs. Rhinebeck Bancorp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |