Correlation Between Bank Utica and Grand River
Can any of the company-specific risk be diversified away by investing in both Bank Utica and Grand River 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 Grand River 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 Grand River Commerce, you can compare the effects of market volatilities on Bank Utica and Grand River 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 Grand River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Utica and Grand River.
Diversification Opportunities for Bank Utica and Grand River
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Grand is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bank Utica Ny and Grand River Commerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand River Commerce 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 Grand River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand River Commerce has no effect on the direction of Bank Utica i.e., Bank Utica and Grand River go up and down completely randomly.
Pair Corralation between Bank Utica and Grand River
Assuming the 90 days horizon Bank Utica Ny is expected to generate 1.6 times more return on investment than Grand River. However, Bank Utica is 1.6 times more volatile than Grand River Commerce. It trades about 0.03 of its potential returns per unit of risk. Grand River Commerce is currently generating about -0.05 per unit of risk. If you would invest 36,313 in Bank Utica Ny on August 25, 2024 and sell it today you would earn a total of 11,188 from holding Bank Utica Ny or generate 30.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.15% |
| Values | Daily Returns |
Bank Utica Ny vs. Grand River Commerce
Performance |
| Timeline |
| Bank Utica Ny |
| Grand River Commerce |
Bank Utica and Grand River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Utica and Grand River
The main advantage of trading using opposite Bank Utica and Grand River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Utica position performs unexpectedly, Grand River 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 Grand River will offset losses from the drop in Grand River'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 |
| Grand River vs. Standard Bank Group | Grand River vs. PSB Holdings | Grand River vs. United Overseas Bank | Grand River vs. Turkiye Garanti Bankasi |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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