Correlation Between Bank Utica and Oxford Bank
Can any of the company-specific risk be diversified away by investing in both Bank Utica and Oxford Bank 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 Oxford Bank 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 Oxford Bank, you can compare the effects of market volatilities on Bank Utica and Oxford Bank 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 Oxford Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Utica and Oxford Bank.
Diversification Opportunities for Bank Utica and Oxford Bank
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bank and Oxford is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Bank Utica Ny and Oxford Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Bank 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 Oxford Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Bank has no effect on the direction of Bank Utica i.e., Bank Utica and Oxford Bank go up and down completely randomly.
Pair Corralation between Bank Utica and Oxford Bank
Assuming the 90 days horizon Bank Utica Ny is expected to generate 3.01 times more return on investment than Oxford Bank. However, Bank Utica is 3.01 times more volatile than Oxford Bank. It trades about 0.12 of its potential returns per unit of risk. Oxford Bank is currently generating about 0.11 per unit of risk. If you would invest 43,500 in Bank Utica Ny on August 25, 2024 and sell it today you would earn a total of 4,001 from holding Bank Utica Ny or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Utica Ny vs. Oxford Bank
Performance |
| Timeline |
| Bank Utica Ny |
| Oxford Bank |
Bank Utica and Oxford Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Utica and Oxford Bank
The main advantage of trading using opposite Bank Utica and Oxford Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Utica position performs unexpectedly, Oxford Bank 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 Oxford Bank will offset losses from the drop in Oxford Bank'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 |
| Oxford Bank vs. Standard Bank Group | Oxford Bank vs. PSB Holdings | Oxford Bank vs. United Overseas Bank | Oxford Bank 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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