Correlation Between BCB Bancorp and VULCAN

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BCB Bancorp and VULCAN 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 VULCAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCB Bancorp and VULCAN MATLS 39, you can compare the effects of market volatilities on BCB Bancorp and VULCAN 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 VULCAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCB Bancorp and VULCAN.

Diversification Opportunities for BCB Bancorp and VULCAN

-0.55
  Correlation Coefficient

Excellent diversification

The 3 months correlation between BCB and VULCAN is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding BCB Bancorp and VULCAN MATLS 39 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VULCAN MATLS 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 VULCAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VULCAN MATLS has no effect on the direction of BCB Bancorp i.e., BCB Bancorp and VULCAN go up and down completely randomly.

Pair Corralation between BCB Bancorp and VULCAN

Given the investment horizon of 90 days BCB Bancorp is expected to generate 9.34 times more return on investment than VULCAN. However, BCB Bancorp is 9.34 times more volatile than VULCAN MATLS 39. It trades about 0.25 of its potential returns per unit of risk. VULCAN MATLS 39 is currently generating about 0.12 per unit of risk. If you would invest  1,198  in BCB Bancorp on September 1, 2024 and sell it today you would earn a total of  129.00  from holding BCB Bancorp or generate 10.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy90.48%
ValuesDaily Returns

BCB Bancorp  vs.  VULCAN MATLS 39

 Performance 
       Timeline  
BCB Bancorp 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in BCB Bancorp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain fundamental drivers, BCB Bancorp reported solid returns over the last few months and may actually be approaching a breakup point.
VULCAN MATLS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days VULCAN MATLS 39 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for VULCAN MATLS 39 investors.

BCB Bancorp and VULCAN Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BCB Bancorp and VULCAN

The main advantage of trading using opposite BCB Bancorp and VULCAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCB Bancorp position performs unexpectedly, VULCAN 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 VULCAN will offset losses from the drop in VULCAN'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
The idea behind BCB Bancorp and VULCAN MATLS 39 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
VULCAN vs. Toro Co
VULCAN vs. RBC Bearings Incorporated
VULCAN vs. BCB Bancorp
VULCAN vs. Mativ Holdings
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Other Complementary Tools

Bonds Directory
Find actively traded corporate debentures issued by US companies
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY