Correlation Between Procter Gamble and CCFNB Bancorp

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

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

Diversification Opportunities for Procter Gamble and CCFNB Bancorp

0.1

Correlation Coefficient

Procter Gamble  CCFNB Bancorp

Average diversification

The 3 months correlation between Procter and CCFNB is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Procter Gamble and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp and Procter Gamble 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 Procter Gamble 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 Procter Gamble i.e., Procter Gamble and CCFNB Bancorp go up and down completely randomly.

Pair Corralation between Procter Gamble and CCFNB Bancorp

Allowing for the 90-day total investment horizon Procter Gamble is expected to under-perform the CCFNB Bancorp. But the stock apears to be less risky and, when comparing its historical volatility, Procter Gamble is 1.33 times less risky than CCFNB Bancorp. The stock trades about -0.03 of its potential returns per unit of risk. The CCFNB Bancorp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  4,588  in CCFNB Bancorp on July 13, 2025 and sell it today you would earn a total of  412.00  from holding CCFNB Bancorp or generate 8.98% return on investment over 90 days.

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

Procter Gamble  vs.  CCFNB Bancorp

Procter Gamble

Risk-Adjusted Performance

Weakest

Over the last 90 days Procter Gamble has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Procter Gamble is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the 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 9 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical and fundamental indicators, CCFNB Bancorp may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Procter Gamble and CCFNB Bancorp

The main advantage of trading using opposite Procter Gamble and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procter Gamble 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 Procter Gamble 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.