Correlation Between CCFNB Bancorp and Tri City

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

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

Diversification Opportunities for CCFNB Bancorp and Tri City

0.89

Correlation Coefficient

CCFNB Bancorp  Tri City

Very poor diversification

The 3 months correlation between CCFNB and Tri is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CCFNB Bancorp and Tri City Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tri City Bankshares 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 Tri City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tri City Bankshares has no effect on the direction of CCFNB Bancorp i.e., CCFNB Bancorp and Tri City go up and down completely randomly.

Pair Corralation between CCFNB Bancorp and Tri City

Given the investment horizon of 90 days CCFNB Bancorp is expected to generate 1.43 times less return on investment than Tri City. But when comparing it to its historical volatility, CCFNB Bancorp is 1.11 times less risky than Tri City. It trades about 0.12 of its potential returns per unit of risk. Tri City Bankshares is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,573  in Tri City Bankshares on August 22, 2025 and sell it today you would earn a total of  137.00  from holding Tri City Bankshares or generate 8.71% return on investment over 90 days.

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

CCFNB Bancorp  vs.  Tri City Bankshares

CCFNB Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CCFNB Bancorp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, CCFNB Bancorp is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Tri City Bankshares

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Tri City Bankshares are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Tri City may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with CCFNB Bancorp and Tri City

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

The idea behind CCFNB Bancorp and Tri City Bankshares 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.