Correlation Between Pioneer Bankshares and CCFNB Bancorp

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

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

Diversification Opportunities for Pioneer Bankshares and CCFNB Bancorp

0.76

Correlation Coefficient

Pioneer Bankshares  CCFNB Bancorp

Poor diversification

The 3 months correlation between Pioneer and CCFNB is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Bankshares and CCFNB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCFNB Bancorp and Pioneer Bankshares 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 Pioneer Bankshares 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 Pioneer Bankshares i.e., Pioneer Bankshares and CCFNB Bancorp go up and down completely randomly.

Pair Corralation between Pioneer Bankshares and CCFNB Bancorp

Given the investment horizon of 90 days Pioneer Bankshares is expected to generate 1.52 times less return on investment than CCFNB Bancorp. But when comparing it to its historical volatility, Pioneer Bankshares is 1.98 times less risky than CCFNB Bancorp. It trades about 0.11 of its potential returns per unit of risk. CCFNB Bancorp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  4,381  in CCFNB Bancorp on May 5, 2025 and sell it today you would earn a total of  408.00  from holding CCFNB Bancorp or generate 9.31% return on investment over 90 days.

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

Pioneer Bankshares  vs.  CCFNB Bancorp

Pioneer Bankshares

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Bankshares are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain fundamental drivers, Pioneer Bankshares may actually be approaching a critical reversion point that can send shares even higher in September 2025.

CCFNB Bancorp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CCFNB Bancorp are ranked lower than 6 (%) 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 September 2025.

Pair Trading with Pioneer Bankshares and CCFNB Bancorp

The main advantage of trading using opposite Pioneer Bankshares and CCFNB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Bankshares 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 Pioneer Bankshares 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.