Correlation Between Brand Engagement and BCB Bancorp
Can any of the company-specific risk be diversified away by investing in both Brand Engagement and BCB 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 Brand Engagement and BCB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brand Engagement Network and BCB Bancorp, you can compare the effects of market volatilities on Brand Engagement and BCB 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 Brand Engagement with a short position of BCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brand Engagement and BCB Bancorp.
Diversification Opportunities for Brand Engagement and BCB Bancorp
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brand and BCB is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Brand Engagement Network and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp and Brand Engagement 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 Brand Engagement Network are associated (or correlated) with BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of Brand Engagement i.e., Brand Engagement and BCB Bancorp go up and down completely randomly.
Pair Corralation between Brand Engagement and BCB Bancorp
Assuming the 90 days horizon Brand Engagement Network is expected to generate 13.54 times more return on investment than BCB Bancorp. However, Brand Engagement is 13.54 times more volatile than BCB Bancorp. It trades about 0.07 of its potential returns per unit of risk. BCB Bancorp is currently generating about 0.25 per unit of risk. If you would invest 2.08 in Brand Engagement Network on September 1, 2024 and sell it today you would lose (0.44) from holding Brand Engagement Network or give up 21.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.9% |
| Values | Daily Returns |
Brand Engagement Network vs. BCB Bancorp
Performance |
| Timeline |
| Brand Engagement Network |
| BCB Bancorp |
Brand Engagement and BCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brand Engagement and BCB Bancorp
The main advantage of trading using opposite Brand Engagement and BCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brand Engagement position performs unexpectedly, BCB 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 BCB Bancorp will offset losses from the drop in BCB Bancorp's long position.| Brand Engagement vs. U Haul Holding | Brand Engagement vs. Triton International Limited | Brand Engagement vs. National Beverage Corp | Brand Engagement vs. Albertsons Companies |
| BCB Bancorp vs. Provident Financial Services | BCB Bancorp vs. First Mid Illinois | BCB Bancorp vs. ConnectOne Bancorp | BCB Bancorp vs. Finward Bancorp |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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