Correlation Between Blue Foundry and Bogota Financial
Can any of the company-specific risk be diversified away by investing in both Blue Foundry and Bogota 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 Blue Foundry and Bogota Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blue Foundry Bancorp and Bogota Financial Corp, you can compare the effects of market volatilities on Blue Foundry and Bogota 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 Blue Foundry with a short position of Bogota Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blue Foundry and Bogota Financial.
Diversification Opportunities for Blue Foundry and Bogota Financial
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blue and Bogota is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Blue Foundry Bancorp and Bogota Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bogota Financial Corp and Blue Foundry 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 Blue Foundry Bancorp are associated (or correlated) with Bogota Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bogota Financial Corp has no effect on the direction of Blue Foundry i.e., Blue Foundry and Bogota Financial go up and down completely randomly.
Pair Corralation between Blue Foundry and Bogota Financial
Given the investment horizon of 90 days Blue Foundry Bancorp is expected to generate 0.86 times more return on investment than Bogota Financial. However, Blue Foundry Bancorp is 1.17 times less risky than Bogota Financial. It trades about 0.28 of its potential returns per unit of risk. Bogota Financial Corp is currently generating about 0.02 per unit of risk. If you would invest 1,000.00 in Blue Foundry Bancorp on August 28, 2024 and sell it today you would earn a total of 123.00 from holding Blue Foundry Bancorp or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blue Foundry Bancorp vs. Bogota Financial Corp
Performance |
| Timeline |
| Blue Foundry Bancorp |
| Bogota Financial Corp |
Blue Foundry and Bogota Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blue Foundry and Bogota Financial
The main advantage of trading using opposite Blue Foundry and Bogota Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blue Foundry position performs unexpectedly, Bogota 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 Bogota Financial will offset losses from the drop in Bogota Financial's long position.| Blue Foundry vs. Home Federal Bancorp | Blue Foundry vs. Lake Shore Bancorp | Blue Foundry vs. Community West Bancshares | Blue Foundry vs. Bogota Financial Corp |
| Bogota Financial vs. Home Federal Bancorp | Bogota Financial vs. First Financial Northwest | Bogota Financial vs. First Northwest Bancorp | Bogota Financial vs. First Capital |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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