Correlation Between Chemung Financial and Bayfirst Financial
Can any of the company-specific risk be diversified away by investing in both Chemung Financial and Bayfirst Financial 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 Chemung Financial and Bayfirst Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chemung Financial Corp and Bayfirst Financial Corp, you can compare the effects of market volatilities on Chemung Financial and Bayfirst Financial 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 Chemung Financial with a short position of Bayfirst Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemung Financial and Bayfirst Financial.
Diversification Opportunities for Chemung Financial and Bayfirst Financial
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chemung and Bayfirst is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Chemung Financial Corp and Bayfirst Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayfirst Financial Corp and Chemung Financial 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 Chemung Financial Corp are associated (or correlated) with Bayfirst Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayfirst Financial Corp has no effect on the direction of Chemung Financial i.e., Chemung Financial and Bayfirst Financial go up and down completely randomly.
Pair Corralation between Chemung Financial and Bayfirst Financial
Given the investment horizon of 90 days Chemung Financial Corp is expected to generate 0.29 times more return on investment than Bayfirst Financial. However, Chemung Financial Corp is 3.42 times less risky than Bayfirst Financial. It trades about 0.11 of its potential returns per unit of risk. Bayfirst Financial Corp is currently generating about -0.13 per unit of risk. If you would invest 4,768 in Chemung Financial Corp on June 11, 2025 and sell it today you would earn a total of 534.00 from holding Chemung Financial Corp or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemung Financial Corp vs. Bayfirst Financial Corp
Performance |
| Timeline |
| Chemung Financial Corp |
| Bayfirst Financial Corp |
Chemung Financial and Bayfirst Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemung Financial and Bayfirst Financial
The main advantage of trading using opposite Chemung Financial and Bayfirst Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemung Financial position performs unexpectedly, Bayfirst Financial 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 Bayfirst Financial will offset losses from the drop in Bayfirst Financial's long position.| Chemung Financial vs. CF Financial | Chemung Financial vs. First Community | Chemung Financial vs. FS Bancorp | Chemung Financial vs. Investar Holding Corp |
| Bayfirst Financial vs. Affinity Bancshares | Bayfirst Financial vs. Southern California Bancorp | Bayfirst Financial vs. Auburn National Bancorporation | Bayfirst Financial vs. BayCom Corp |
Check out your portfolio center.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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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