Correlation Between BCB Bancorp and Summit Environmental
Can any of the company-specific risk be diversified away by investing in both BCB Bancorp and Summit Environmental 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 Summit Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCB Bancorp and Summit Environmental, you can compare the effects of market volatilities on BCB Bancorp and Summit Environmental 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 Summit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCB Bancorp and Summit Environmental.
Diversification Opportunities for BCB Bancorp and Summit Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BCB and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BCB Bancorp and Summit Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Environmental 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 Summit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Environmental has no effect on the direction of BCB Bancorp i.e., BCB Bancorp and Summit Environmental go up and down completely randomly.
Pair Corralation between BCB Bancorp and Summit Environmental
If you would invest 1,162 in BCB Bancorp on September 3, 2024 and sell it today you would earn a total of 165.00 from holding BCB Bancorp or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCB Bancorp vs. Summit Environmental
Performance |
| Timeline |
| BCB Bancorp |
| Summit Environmental |
BCB Bancorp and Summit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCB Bancorp and Summit Environmental
The main advantage of trading using opposite BCB Bancorp and Summit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCB Bancorp position performs unexpectedly, Summit Environmental 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 Summit Environmental will offset losses from the drop in Summit Environmental'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 |
| Summit Environmental vs. Advantage Solutions | Summit Environmental vs. Atlas Corp | Summit Environmental vs. PureCycle Technologies | Summit Environmental vs. WM Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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