Correlation Between BCB Bancorp and Adobe
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By analyzing existing cross correlation between BCB Bancorp and Adobe 23 percent, you can compare the effects of market volatilities on BCB Bancorp and Adobe 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 Adobe. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCB Bancorp and Adobe.
Diversification Opportunities for BCB Bancorp and Adobe
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BCB and Adobe is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding BCB Bancorp and Adobe 23 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adobe 23 percent 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 Adobe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adobe 23 percent has no effect on the direction of BCB Bancorp i.e., BCB Bancorp and Adobe go up and down completely randomly.
Pair Corralation between BCB Bancorp and Adobe
Given the investment horizon of 90 days BCB Bancorp is expected to under-perform the Adobe. In addition to that, BCB Bancorp is 1.77 times more volatile than Adobe 23 percent. It trades about -0.17 of its total potential returns per unit of risk. Adobe 23 percent is currently generating about -0.1 per unit of volatility. If you would invest 8,902 in Adobe 23 percent on September 13, 2024 and sell it today you would lose (128.00) from holding Adobe 23 percent or give up 1.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
BCB Bancorp vs. Adobe 23 percent
Performance |
| Timeline |
| BCB Bancorp |
| Adobe 23 percent |
BCB Bancorp and Adobe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCB Bancorp and Adobe
The main advantage of trading using opposite BCB Bancorp and Adobe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCB Bancorp position performs unexpectedly, Adobe 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 Adobe will offset losses from the drop in Adobe'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 |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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