Correlation Between Cashmere Valley and BankFirst Capital
Can any of the company-specific risk be diversified away by investing in both Cashmere Valley and BankFirst Capital 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 Cashmere Valley and BankFirst Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cashmere Valley Bank and BankFirst Capital, you can compare the effects of market volatilities on Cashmere Valley and BankFirst Capital 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 Cashmere Valley with a short position of BankFirst Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cashmere Valley and BankFirst Capital.
Diversification Opportunities for Cashmere Valley and BankFirst Capital
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cashmere and BankFirst is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cashmere Valley Bank and BankFirst Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankFirst Capital and Cashmere Valley 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 Cashmere Valley Bank are associated (or correlated) with BankFirst Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankFirst Capital has no effect on the direction of Cashmere Valley i.e., Cashmere Valley and BankFirst Capital go up and down completely randomly.
Pair Corralation between Cashmere Valley and BankFirst Capital
Given the investment horizon of 90 days Cashmere Valley Bank is expected to under-perform the BankFirst Capital. But the otc stock apears to be less risky and, when comparing its historical volatility, Cashmere Valley Bank is 1.3 times less risky than BankFirst Capital. The otc stock trades about -0.1 of its potential returns per unit of risk. The BankFirst Capital is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,390 in BankFirst Capital on August 29, 2025 and sell it today you would earn a total of 255.00 from holding BankFirst Capital or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cashmere Valley Bank vs. BankFirst Capital
Performance |
| Timeline |
| Cashmere Valley Bank |
| BankFirst Capital |
Cashmere Valley and BankFirst Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cashmere Valley and BankFirst Capital
The main advantage of trading using opposite Cashmere Valley and BankFirst Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cashmere Valley position performs unexpectedly, BankFirst Capital 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 BankFirst Capital will offset losses from the drop in BankFirst Capital's long position.| Cashmere Valley vs. Franklin Wireless Corp | Cashmere Valley vs. North American Construction | Cashmere Valley vs. City Office REIT | Cashmere Valley vs. Granite Construction Incorporated |
| BankFirst Capital vs. Altigen Communications | BankFirst Capital vs. First Foods Group | BankFirst Capital vs. ConAgra Foods | BankFirst Capital vs. Suntory Beverage Food |
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 CEOs Directory module to screen CEOs from public companies around the world.
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