Correlation Between Chemung Financial and FVCBankcorp
Can any of the company-specific risk be diversified away by investing in both Chemung Financial and FVCBankcorp 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 FVCBankcorp 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 FVCBankcorp, you can compare the effects of market volatilities on Chemung Financial and FVCBankcorp 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 FVCBankcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemung Financial and FVCBankcorp.
Diversification Opportunities for Chemung Financial and FVCBankcorp
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chemung and FVCBankcorp is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Chemung Financial Corp and FVCBankcorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FVCBankcorp 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 FVCBankcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FVCBankcorp has no effect on the direction of Chemung Financial i.e., Chemung Financial and FVCBankcorp go up and down completely randomly.
Pair Corralation between Chemung Financial and FVCBankcorp
Given the investment horizon of 90 days Chemung Financial is expected to generate 1.12 times less return on investment than FVCBankcorp. But when comparing it to its historical volatility, Chemung Financial Corp is 1.09 times less risky than FVCBankcorp. It trades about 0.16 of its potential returns per unit of risk. FVCBankcorp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,136 in FVCBankcorp on May 31, 2025 and sell it today you would earn a total of 219.00 from holding FVCBankcorp or generate 19.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chemung Financial Corp vs. FVCBankcorp
Performance |
| Timeline |
| Chemung Financial Corp |
| FVCBankcorp |
Chemung Financial and FVCBankcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemung Financial and FVCBankcorp
The main advantage of trading using opposite Chemung Financial and FVCBankcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemung Financial position performs unexpectedly, FVCBankcorp 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 FVCBankcorp will offset losses from the drop in FVCBankcorp's long position.| Chemung Financial vs. CF Financial | Chemung Financial vs. First Community | Chemung Financial vs. FS Bancorp | Chemung Financial vs. Investar Holding Corp |
| FVCBankcorp vs. Community West Bancshares | FVCBankcorp vs. Investar Holding Corp | FVCBankcorp vs. Finward Bancorp | FVCBankcorp vs. First Northwest Bancorp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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