Correlation Between BCB Bancorp and Pinterest
Can any of the company-specific risk be diversified away by investing in both BCB Bancorp and Pinterest 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 Pinterest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCB Bancorp and Pinterest, you can compare the effects of market volatilities on BCB Bancorp and Pinterest 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 Pinterest. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCB Bancorp and Pinterest.
Diversification Opportunities for BCB Bancorp and Pinterest
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BCB and Pinterest is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BCB Bancorp and Pinterest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinterest 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 Pinterest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinterest has no effect on the direction of BCB Bancorp i.e., BCB Bancorp and Pinterest go up and down completely randomly.
Pair Corralation between BCB Bancorp and Pinterest
Given the investment horizon of 90 days BCB Bancorp is expected to generate 0.91 times more return on investment than Pinterest. However, BCB Bancorp is 1.1 times less risky than Pinterest. It trades about 0.12 of its potential returns per unit of risk. Pinterest is currently generating about -0.08 per unit of risk. If you would invest 961.00 in BCB Bancorp on September 3, 2024 and sell it today you would earn a total of 375.00 from holding BCB Bancorp or generate 39.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCB Bancorp vs. Pinterest
Performance |
| Timeline |
| BCB Bancorp |
BCB Bancorp and Pinterest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCB Bancorp and Pinterest
The main advantage of trading using opposite BCB Bancorp and Pinterest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCB Bancorp position performs unexpectedly, Pinterest 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 Pinterest will offset losses from the drop in Pinterest's long position.| BCB Bancorp vs. Provident Financial Services | BCB Bancorp vs. First Mid Illinois | BCB Bancorp vs. ConnectOne Bancorp | BCB Bancorp vs. Finward Bancorp |
| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Correlations Find global opportunities by holding instruments from different markets |