Correlation Between CFSB Bancorp and Blue Foundry

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

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

Diversification Opportunities for CFSB Bancorp and Blue Foundry

-0.72

Correlation Coefficient

CFSB Bancorp  Blue Foundry

Pay attention - limited upside

The 3 months correlation between CFSB and Blue is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding CFSB Bancorp and Blue Foundry Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Foundry Bancorp and CFSB 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 CFSB Bancorp are associated (or correlated) with Blue Foundry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Foundry Bancorp has no effect on the direction of CFSB Bancorp i.e., CFSB Bancorp and Blue Foundry go up and down completely randomly.

Pair Corralation between CFSB Bancorp and Blue Foundry

Given the investment horizon of 90 days CFSB Bancorp is expected to generate 5.31 times more return on investment than Blue Foundry. However, CFSB Bancorp is 5.31 times more volatile than Blue Foundry Bancorp. It trades about 0.13 of its potential returns per unit of risk. Blue Foundry Bancorp is currently generating about -0.15 per unit of risk. If you would invest  794.00  in CFSB Bancorp on May 13, 2025 and sell it today you would earn a total of  594.00  from holding CFSB Bancorp or generate 74.81% return on investment over 90 days.

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

CFSB Bancorp  vs.  Blue Foundry Bancorp

CFSB Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CFSB Bancorp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, CFSB Bancorp sustained solid returns over the last few months and may actually be approaching a breakup point.

Blue Foundry Bancorp

Risk-Adjusted Performance

Weakest

Over the last 90 days Blue Foundry Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with CFSB Bancorp and Blue Foundry

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

The idea behind CFSB Bancorp and Blue Foundry 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .