Correlation Between Benchmark Bankshares and Community Capital

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

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

Diversification Opportunities for Benchmark Bankshares and Community Capital

0.0

Correlation Coefficient

Benchmark Bankshares  Community Capital

Pay attention - limited upside

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

Pair Corralation between Benchmark Bankshares and Community Capital

If you would invest  2,900  in Benchmark Bankshares on June 30, 2025 and sell it today you would earn a total of  350.00  from holding Benchmark Bankshares or generate 12.07% return on investment over 90 days.

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

Benchmark Bankshares  vs.  Community Capital Bancshares

Benchmark Bankshares

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Benchmark Bankshares are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental drivers, Benchmark Bankshares may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Community Capital

Risk-Adjusted Performance

Weakest

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.

Pair Trading with Benchmark Bankshares and Community Capital

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

The idea behind Benchmark Bankshares and Community Capital Bancshares 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.