Correlation Between Community Capital and Commercial National

Can any of the company-specific risk be diversified away by investing in both Community Capital and Commercial National 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 Community Capital and Commercial National into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Community Capital Bancshares and Commercial National Financial, you can compare the effects of market volatilities on Community Capital and Commercial National 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 Community Capital with a short position of Commercial National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Community Capital and Commercial National.

Diversification Opportunities for Community Capital and Commercial National

0.0

Correlation Coefficient

Community Capital  Commercial National

Pay attention - limited upside

The 3 months correlation between Community and Commercial is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Community Capital Bancshares and Commercial National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commercial National and Community Capital 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 Community Capital Bancshares are associated (or correlated) with Commercial National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commercial National has no effect on the direction of Community Capital i.e., Community Capital and Commercial National go up and down completely randomly.

Pair Corralation between Community Capital and Commercial National

If you would invest  1,039  in Commercial National Financial on May 4, 2025 and sell it today you would earn a total of  96.00  from holding Commercial National Financial or generate 9.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Community Capital Bancshares  vs.  Commercial National Financial

Community Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Community Capital Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental drivers, Community Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Commercial National

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Commercial National Financial are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Commercial National may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Community Capital and Commercial National

The main advantage of trading using opposite Community Capital and Commercial National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Community Capital position performs unexpectedly, Commercial National 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 Commercial National will offset losses from the drop in Commercial National's long position.

The idea behind Community Capital Bancshares and Commercial National Financial 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.

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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.