Correlation Between Aozora Bank and TrustCo Bank
Can any of the company-specific risk be diversified away by investing in both Aozora Bank 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 Aozora Bank and TrustCo Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aozora Bank and TrustCo Bank Corp, you can compare the effects of market volatilities on Aozora Bank 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 Aozora Bank with a short position of TrustCo Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aozora Bank and TrustCo Bank.
Diversification Opportunities for Aozora Bank and TrustCo Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aozora and TrustCo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aozora Bank 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 Aozora Bank 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 Aozora Bank 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 Aozora Bank i.e., Aozora Bank and TrustCo Bank go up and down completely randomly.
Pair Corralation between Aozora Bank and TrustCo Bank
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Aozora Bank vs. TrustCo Bank Corp
Performance |
| Timeline |
| Aozora Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| TrustCo Bank Corp |
Aozora Bank and TrustCo Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aozora Bank and TrustCo Bank
The main advantage of trading using opposite Aozora Bank and TrustCo Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aozora Bank 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.| Aozora Bank vs. Getty Realty | Aozora Bank vs. MYT Netherlands Parent | Aozora Bank vs. China Resources Beer | Aozora Bank vs. National Beverage Corp |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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