Correlation Between Cullman Bancorp and ECB Bancorp
Can any of the company-specific risk be diversified away by investing in both Cullman Bancorp and ECB 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 Cullman Bancorp and ECB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cullman Bancorp and ECB Bancorp, you can compare the effects of market volatilities on Cullman Bancorp and ECB 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 Cullman Bancorp with a short position of ECB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullman Bancorp and ECB Bancorp.
Diversification Opportunities for Cullman Bancorp and ECB Bancorp
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cullman and ECB is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cullman Bancorp and ECB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECB Bancorp and Cullman 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 Cullman Bancorp are associated (or correlated) with ECB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECB Bancorp has no effect on the direction of Cullman Bancorp i.e., Cullman Bancorp and ECB Bancorp go up and down completely randomly.
Pair Corralation between Cullman Bancorp and ECB Bancorp
Given the investment horizon of 90 days Cullman Bancorp is expected to generate 81.24 times less return on investment than ECB Bancorp. But when comparing it to its historical volatility, Cullman Bancorp is 2.03 times less risky than ECB Bancorp. It trades about 0.0 of its potential returns per unit of risk. ECB Bancorp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,145 in ECB Bancorp on March 4, 2024 and sell it today you would earn a total of 55.00 from holding ECB Bancorp or generate 4.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cullman Bancorp vs. ECB Bancorp
Performance |
Timeline |
Cullman Bancorp |
ECB Bancorp |
Cullman Bancorp and ECB Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cullman Bancorp and ECB Bancorp
The main advantage of trading using opposite Cullman Bancorp and ECB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cullman Bancorp position performs unexpectedly, ECB 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 ECB Bancorp will offset losses from the drop in ECB Bancorp's long position.Cullman Bancorp vs. HMN Financial | Cullman Bancorp vs. Home Federal Bancorp | Cullman Bancorp vs. Lake Shore Bancorp | Cullman Bancorp vs. Community West Bancshares |
ECB Bancorp vs. Cullman Bancorp | ECB Bancorp vs. Home Federal Bancorp | ECB Bancorp vs. HMN Financial | ECB Bancorp vs. Magyar 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |