Correlation Between PT Bank and CCFNB Bancorp

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

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

Diversification Opportunities for PT Bank and CCFNB Bancorp

-0.71

Correlation Coefficient

PT Bank  CCFNB Bancorp

Pay attention - limited upside

The 3 months correlation between PBCRF and CCFNB is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Central and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp and PT Bank 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 PT Bank Central are associated (or correlated) with CCFNB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCFNB Bancorp has no effect on the direction of PT Bank i.e., PT Bank and CCFNB Bancorp go up and down completely randomly.

Pair Corralation between PT Bank and CCFNB Bancorp

Assuming the 90 days horizon PT Bank Central is expected to under-perform the CCFNB Bancorp. In addition to that, PT Bank is 1.59 times more volatile than CCFNB Bancorp. It trades about -0.12 of its total potential returns per unit of risk. CCFNB Bancorp is currently generating about 0.1 per unit of volatility. If you would invest  4,500  in CCFNB Bancorp on May 27, 2025 and sell it today you would earn a total of  500.00  from holding CCFNB Bancorp or generate 11.11% return on investment over 90 days.

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

PT Bank Central  vs.  CCFNB Bancorp

PT Bank Central

Risk-Adjusted Performance

Weakest

Over the last 90 days PT Bank Central has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

CCFNB Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CCFNB Bancorp are ranked lower than 7 (%) 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.

Pair Trading with PT Bank and CCFNB Bancorp

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

The idea behind PT Bank Central and CCFNB 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.