Correlation Between Auburn Bancorp and Bank Utica
Can any of the company-specific risk be diversified away by investing in both Auburn Bancorp and Bank Utica 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 Auburn Bancorp and Bank Utica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auburn Bancorp and Bank Utica Ny, you can compare the effects of market volatilities on Auburn Bancorp and Bank Utica 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 Auburn Bancorp with a short position of Bank Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auburn Bancorp and Bank Utica.
Diversification Opportunities for Auburn Bancorp and Bank Utica
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auburn and Bank is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Auburn Bancorp and Bank Utica Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Utica Ny and Auburn Bancorp 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 Auburn Bancorp are associated (or correlated) with Bank Utica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Utica Ny has no effect on the direction of Auburn Bancorp i.e., Auburn Bancorp and Bank Utica go up and down completely randomly.
Pair Corralation between Auburn Bancorp and Bank Utica
Given the investment horizon of 90 days Auburn Bancorp is expected to generate 2.17 times less return on investment than Bank Utica. But when comparing it to its historical volatility, Auburn Bancorp is 4.99 times less risky than Bank Utica. It trades about 0.32 of its potential returns per unit of risk. Bank Utica Ny is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 43,000 in Bank Utica Ny on September 1, 2024 and sell it today you would earn a total of 2,501 from holding Bank Utica Ny or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auburn Bancorp vs. Bank Utica Ny
Performance |
| Timeline |
| Auburn Bancorp |
| Bank Utica Ny |
Auburn Bancorp and Bank Utica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auburn Bancorp and Bank Utica
The main advantage of trading using opposite Auburn Bancorp and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auburn Bancorp position performs unexpectedly, Bank Utica 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 Bank Utica will offset losses from the drop in Bank Utica's long position.| Auburn Bancorp vs. Andover Bancorp | Auburn Bancorp vs. Aozora Bank Ltd | Auburn Bancorp vs. Absa Group Limited |
| Bank Utica vs. Bank Mandiri Persero | Bank Utica vs. Piraeus Bank SA | Bank Utica vs. Kasikornbank Public Co | Bank Utica vs. Turkiye Garanti Bankasi |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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