Correlation Between CCFNB Bancorp and Apollo Bancorp

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

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

Diversification Opportunities for CCFNB Bancorp and Apollo Bancorp

0.18

Correlation Coefficient

CCFNB Bancorp  Apollo Bancorp

Average diversification

The 3 months correlation between CCFNB and Apollo is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CCFNB Bancorp and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and CCFNB 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 CCFNB Bancorp are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of CCFNB Bancorp i.e., CCFNB Bancorp and Apollo Bancorp go up and down completely randomly.

Pair Corralation between CCFNB Bancorp and Apollo Bancorp

Given the investment horizon of 90 days CCFNB Bancorp is expected to generate 11.57 times less return on investment than Apollo Bancorp. But when comparing it to its historical volatility, CCFNB Bancorp is 3.59 times less risky than Apollo Bancorp. It trades about 0.05 of its potential returns per unit of risk. Apollo Bancorp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  4,068  in Apollo Bancorp on May 4, 2025 and sell it today you would earn a total of  402.00  from holding Apollo Bancorp or generate 9.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CCFNB Bancorp  vs.  Apollo Bancorp

CCFNB Bancorp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CCFNB Bancorp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, CCFNB Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Apollo Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Apollo Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy essential indicators, Apollo Bancorp is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CCFNB Bancorp and Apollo Bancorp

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

The idea behind CCFNB Bancorp and Apollo Bancorp 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.