Correlation Between Bank of Utica and Bank Utica
Can any of the company-specific risk be diversified away by investing in both Bank of Utica and Bank Utica 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 Bank of Utica and Bank Utica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Utica and Bank Utica Ny, you can compare the effects of market volatilities on Bank of Utica and Bank Utica 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 Bank of Utica with a short position of Bank Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Utica and Bank Utica.
Diversification Opportunities for Bank of Utica and Bank Utica
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bank and Bank is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Utica and Bank Utica Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Utica Ny and Bank of Utica 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 Bank of Utica are associated (or correlated) with Bank Utica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Utica Ny has no effect on the direction of Bank of Utica i.e., Bank of Utica and Bank Utica go up and down completely randomly.
Pair Corralation between Bank of Utica and Bank Utica
Given the investment horizon of 90 days Bank of Utica is expected to generate 0.81 times more return on investment than Bank Utica. However, Bank of Utica is 1.24 times less risky than Bank Utica. It trades about 0.12 of its potential returns per unit of risk. Bank Utica Ny is currently generating about 0.09 per unit of risk. If you would invest 45,000 in Bank of Utica on November 2, 2024 and sell it today you would earn a total of 6,034 from holding Bank of Utica or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.77% |
| Values | Daily Returns |
Bank of Utica vs. Bank Utica Ny
Performance |
| Timeline |
| Bank of Utica |
| Bank Utica Ny |
Bank of Utica and Bank Utica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Utica and Bank Utica
The main advantage of trading using opposite Bank of Utica and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Utica position performs unexpectedly, Bank Utica 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 Bank Utica will offset losses from the drop in Bank Utica's long position.| Bank of Utica vs. CCSB Financial Corp | Bank of Utica vs. First Community Financial | Bank of Utica vs. BEO Bancorp | Bank of Utica vs. First Community |
| Bank Utica vs. CCSB Financial Corp | Bank Utica vs. Bank of Utica | Bank Utica vs. First Community Financial | Bank Utica vs. BEO 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |