Correlation Between BCB Bancorp and Alliant Energy
Can any of the company-specific risk be diversified away by investing in both BCB Bancorp and Alliant Energy 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 BCB Bancorp and Alliant Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCB Bancorp and Alliant Energy Corp, you can compare the effects of market volatilities on BCB Bancorp and Alliant Energy 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 BCB Bancorp with a short position of Alliant Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCB Bancorp and Alliant Energy.
Diversification Opportunities for BCB Bancorp and Alliant Energy
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BCB and Alliant is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding BCB Bancorp and Alliant Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliant Energy Corp and BCB 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 BCB Bancorp are associated (or correlated) with Alliant Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliant Energy Corp has no effect on the direction of BCB Bancorp i.e., BCB Bancorp and Alliant Energy go up and down completely randomly.
Pair Corralation between BCB Bancorp and Alliant Energy
Given the investment horizon of 90 days BCB Bancorp is expected to generate 2.12 times more return on investment than Alliant Energy. However, BCB Bancorp is 2.12 times more volatile than Alliant Energy Corp. It trades about 0.12 of its potential returns per unit of risk. Alliant Energy Corp is currently generating about 0.17 per unit of risk. If you would invest 961.00 in BCB Bancorp on August 30, 2024 and sell it today you would earn a total of 380.00 from holding BCB Bancorp or generate 39.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCB Bancorp vs. Alliant Energy Corp
Performance |
| Timeline |
| BCB Bancorp |
| Alliant Energy Corp |
BCB Bancorp and Alliant Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCB Bancorp and Alliant Energy
The main advantage of trading using opposite BCB Bancorp and Alliant Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCB Bancorp position performs unexpectedly, Alliant Energy 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 Alliant Energy will offset losses from the drop in Alliant Energy's long position.| BCB Bancorp vs. SVB T Corp | BCB Bancorp vs. First Capital | BCB Bancorp vs. Pioneer Bankcorp | BCB Bancorp vs. Liberty Northwest Bancorp |
| Alliant Energy vs. DTE Energy | Alliant Energy vs. Ameren Corp | Alliant Energy vs. CenterPoint Energy | Alliant Energy vs. Pinnacle West Capital |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |