Correlation Between Cullman Bancorp and IF Bancorp

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

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

Diversification Opportunities for Cullman Bancorp and IF Bancorp

0.78

Correlation Coefficient

Cullman Bancorp  IF Bancorp

Poor diversification

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

Pair Corralation between Cullman Bancorp and IF Bancorp

Given the investment horizon of 90 days Cullman Bancorp is expected to generate 1.55 times more return on investment than IF Bancorp. However, Cullman Bancorp is 1.55 times more volatile than IF Bancorp. It trades about 0.12 of its potential returns per unit of risk. IF Bancorp is currently generating about 0.09 per unit of risk. If you would invest  1,142  in Cullman Bancorp on September 13, 2025 and sell it today you would earn a total of  58.00  from holding Cullman Bancorp or generate 5.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	69.81%
Values	Daily Returns

Cullman Bancorp  vs.  IF Bancorp

Cullman Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Cullman Bancorp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, Cullman Bancorp may actually be approaching a critical reversion point that can send shares even higher in January 2026.

IF Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in IF Bancorp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, IF Bancorp is not utilizing all of its potentials. The new stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Cullman Bancorp and IF Bancorp

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

The idea behind Cullman Bancorp and IF 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 CEOs Directory module to screen CEOs from public companies around the world.