Correlation Between American Riviera and Pathfinder Bancorp
Can any of the company-specific risk be diversified away by investing in both American Riviera and Pathfinder Bancorp 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 American Riviera and Pathfinder Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Riviera Bank and Pathfinder Bancorp, you can compare the effects of market volatilities on American Riviera and Pathfinder Bancorp 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 American Riviera with a short position of Pathfinder Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Riviera and Pathfinder Bancorp.
Diversification Opportunities for American Riviera and Pathfinder Bancorp
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between American and Pathfinder is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding American Riviera Bank and Pathfinder Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pathfinder Bancorp and American Riviera 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 American Riviera Bank are associated (or correlated) with Pathfinder Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pathfinder Bancorp has no effect on the direction of American Riviera i.e., American Riviera and Pathfinder Bancorp go up and down completely randomly.
Pair Corralation between American Riviera and Pathfinder Bancorp
Given the investment horizon of 90 days American Riviera is expected to generate 1.32 times less return on investment than Pathfinder Bancorp. But when comparing it to its historical volatility, American Riviera Bank is 1.92 times less risky than Pathfinder Bancorp. It trades about 0.01 of its potential returns per unit of risk. Pathfinder Bancorp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,842 in Pathfinder Bancorp on November 19, 2024 and sell it today you would lose (120.00) from holding Pathfinder Bancorp or give up 6.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.76% |
| Values | Daily Returns |
American Riviera Bank vs. Pathfinder Bancorp
Performance |
| Timeline |
| American Riviera Bank |
| Pathfinder Bancorp |
American Riviera and Pathfinder Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Riviera and Pathfinder Bancorp
The main advantage of trading using opposite American Riviera and Pathfinder Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Riviera position performs unexpectedly, Pathfinder Bancorp 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 Pathfinder Bancorp will offset losses from the drop in Pathfinder Bancorp's long position.| American Riviera vs. Century Next Financial | American Riviera vs. Southern California Bancorp | American Riviera vs. American Business Bk | American Riviera vs. Avidbank Holdings |
| Pathfinder Bancorp vs. Home Federal Bancorp | Pathfinder Bancorp vs. Lake Shore Bancorp | Pathfinder Bancorp vs. Magyar Bancorp | Pathfinder Bancorp vs. Community West Bancshares |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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