Correlation Between Bank of Utica and WCF Bancorp
Can any of the company-specific risk be diversified away by investing in both Bank of Utica and WCF Bancorp 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 WCF Bancorp 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 WCF Bancorp, you can compare the effects of market volatilities on Bank of Utica and WCF Bancorp 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 WCF Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Utica and WCF Bancorp.
Diversification Opportunities for Bank of Utica and WCF Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and WCF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Utica and WCF Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WCF Bancorp 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 WCF Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WCF Bancorp has no effect on the direction of Bank of Utica i.e., Bank of Utica and WCF Bancorp go up and down completely randomly.
Pair Corralation between Bank of Utica and WCF Bancorp
If you would invest 41,860 in Bank of Utica on November 19, 2024 and sell it today you would earn a total of 9,174 from holding Bank of Utica or generate 21.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of Utica vs. WCF Bancorp
Performance |
| Timeline |
| Bank of Utica |
| WCF Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Bank of Utica and WCF Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Utica and WCF Bancorp
The main advantage of trading using opposite Bank of Utica and WCF Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Utica position performs unexpectedly, WCF Bancorp 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 WCF Bancorp will offset losses from the drop in WCF Bancorp'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 |
| WCF Bancorp vs. CCSB Financial Corp | WCF Bancorp vs. Delhi Bank Corp | WCF Bancorp vs. Bank of Utica | WCF Bancorp vs. First Community Financial |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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