Correlation Between CCSB Financial and Ultra Clean

Can any of the company-specific risk be diversified away by investing in both CCSB Financial and Ultra Clean 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 CCSB Financial and Ultra Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CCSB Financial Corp and Ultra Clean Holdings, you can compare the effects of market volatilities on CCSB Financial and Ultra Clean 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 CCSB Financial with a short position of Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCSB Financial and Ultra Clean.

Diversification Opportunities for CCSB Financial and Ultra Clean

0.78

Correlation Coefficient

CCSB Financial  Ultra Clean

Poor diversification

The 3 months correlation between CCSB and Ultra is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding CCSB Financial Corp and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings and CCSB Financial 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 CCSB Financial Corp are associated (or correlated) with Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of CCSB Financial i.e., CCSB Financial and Ultra Clean go up and down completely randomly.

Pair Corralation between CCSB Financial and Ultra Clean

If you would invest  1,950  in Ultra Clean Holdings on May 5, 2025 and sell it today you would earn a total of  280.00  from holding Ultra Clean Holdings or generate 14.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.59%
Values	Daily Returns

CCSB Financial Corp  vs.  Ultra Clean Holdings

CCSB Financial Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days CCSB Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, CCSB Financial is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Ultra Clean Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ultra Clean Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ultra Clean unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CCSB Financial and Ultra Clean

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

The idea behind CCSB Financial Corp and Ultra Clean Holdings 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.

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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.