Correlation Between Bank Utica and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both Bank Utica and CCSB Financial 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 Utica and CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Utica Ny and CCSB Financial Corp, you can compare the effects of market volatilities on Bank Utica and CCSB Financial 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 Utica with a short position of CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Utica and CCSB Financial.
Diversification Opportunities for Bank Utica and CCSB Financial
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and CCSB is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bank Utica Ny and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp and Bank 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 Utica Ny are associated (or correlated) with CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of Bank Utica i.e., Bank Utica and CCSB Financial go up and down completely randomly.
Pair Corralation between Bank Utica and CCSB Financial
Assuming the 90 days horizon Bank Utica Ny is expected to generate 0.84 times more return on investment than CCSB Financial. However, Bank Utica Ny is 1.2 times less risky than CCSB Financial. It trades about 0.07 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.01 per unit of risk. If you would invest 32,828 in Bank Utica Ny on August 25, 2024 and sell it today you would earn a total of 14,673 from holding Bank Utica Ny or generate 44.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 87.09% |
| Values | Daily Returns |
Bank Utica Ny vs. CCSB Financial Corp
Performance |
| Timeline |
| Bank Utica Ny |
| CCSB Financial Corp |
Bank Utica and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Utica and CCSB Financial
The main advantage of trading using opposite Bank Utica and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Utica position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| Bank Utica vs. CCSB Financial Corp | Bank Utica vs. Bank of Utica | Bank Utica vs. First Community Financial | Bank Utica vs. BEO Bancorp |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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