Correlation Between Alpine Banks and TrustCo Bank
Can any of the company-specific risk be diversified away by investing in both Alpine Banks and TrustCo Bank 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 Alpine Banks and TrustCo Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alpine Banks of and TrustCo Bank Corp, you can compare the effects of market volatilities on Alpine Banks and TrustCo Bank 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 Alpine Banks with a short position of TrustCo Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alpine Banks and TrustCo Bank.
Diversification Opportunities for Alpine Banks and TrustCo Bank
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alpine and TrustCo is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Alpine Banks of and TrustCo Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrustCo Bank Corp and Alpine Banks 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 Alpine Banks of are associated (or correlated) with TrustCo Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrustCo Bank Corp has no effect on the direction of Alpine Banks i.e., Alpine Banks and TrustCo Bank go up and down completely randomly.
Pair Corralation between Alpine Banks and TrustCo Bank
Assuming the 90 days horizon Alpine Banks of is expected to under-perform the TrustCo Bank. But the otc stock apears to be less risky and, when comparing its historical volatility, Alpine Banks of is 1.16 times less risky than TrustCo Bank. The otc stock trades about -0.1 of its potential returns per unit of risk. The TrustCo Bank Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,185 in TrustCo Bank Corp on December 4, 2024 and sell it today you would earn a total of 8.00 from holding TrustCo Bank Corp or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Alpine Banks of vs. TrustCo Bank Corp
Performance |
| Timeline |
| Alpine Banks |
| TrustCo Bank Corp |
Alpine Banks and TrustCo Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alpine Banks and TrustCo Bank
The main advantage of trading using opposite Alpine Banks and TrustCo Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alpine Banks position performs unexpectedly, TrustCo Bank 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 TrustCo Bank will offset losses from the drop in TrustCo Bank's long position.The idea behind Alpine Banks of and TrustCo Bank Corp 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.| TrustCo Bank vs. Southern Missouri Bancorp | TrustCo Bank vs. IF Bancorp | TrustCo Bank vs. Colony Bankcorp | TrustCo Bank vs. Old Point Financial |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |