Correlation Between Bank Utica and Parke Bancorp
Can any of the company-specific risk be diversified away by investing in both Bank Utica and Parke 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 Utica and Parke Bancorp 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 Parke Bancorp, you can compare the effects of market volatilities on Bank Utica and Parke 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 Utica with a short position of Parke Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Utica and Parke Bancorp.
Diversification Opportunities for Bank Utica and Parke Bancorp
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Parke is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bank Utica Ny and Parke Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parke Bancorp 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 Parke Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parke Bancorp has no effect on the direction of Bank Utica i.e., Bank Utica and Parke Bancorp go up and down completely randomly.
Pair Corralation between Bank Utica and Parke Bancorp
Assuming the 90 days horizon Bank Utica Ny is expected to generate 1.18 times more return on investment than Parke Bancorp. However, Bank Utica is 1.18 times more volatile than Parke Bancorp. It trades about 0.07 of its potential returns per unit of risk. Parke Bancorp is currently generating about -0.18 per unit of risk. If you would invest 47,000 in Bank Utica Ny on October 21, 2024 and sell it today you would earn a total of 1,000.00 from holding Bank Utica Ny or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Bank Utica Ny vs. Parke Bancorp
Performance |
| Timeline |
| Bank Utica Ny |
| Parke Bancorp |
Bank Utica and Parke Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Utica and Parke Bancorp
The main advantage of trading using opposite Bank Utica and Parke Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Utica position performs unexpectedly, Parke 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 Parke Bancorp will offset losses from the drop in Parke Bancorp'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 |
| Parke Bancorp vs. Sound Financial Bancorp | Parke Bancorp vs. Finward Bancorp | Parke Bancorp vs. Franklin Financial Services | Parke Bancorp vs. Community West Bancshares |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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