Correlation Between Bogota Financial and Blue Foundry
Can any of the company-specific risk be diversified away by investing in both Bogota Financial and Blue Foundry 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 Bogota Financial and Blue Foundry into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bogota Financial Corp and Blue Foundry Bancorp, you can compare the effects of market volatilities on Bogota Financial and Blue Foundry 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 Bogota Financial with a short position of Blue Foundry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bogota Financial and Blue Foundry.
Diversification Opportunities for Bogota Financial and Blue Foundry
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bogota and Blue is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bogota Financial Corp and Blue Foundry Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Foundry Bancorp and Bogota Financial 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 Bogota Financial Corp are associated (or correlated) with Blue Foundry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Foundry Bancorp has no effect on the direction of Bogota Financial i.e., Bogota Financial and Blue Foundry go up and down completely randomly.
Pair Corralation between Bogota Financial and Blue Foundry
Given the investment horizon of 90 days Bogota Financial is expected to generate 10.11 times less return on investment than Blue Foundry. In addition to that, Bogota Financial is 1.17 times more volatile than Blue Foundry Bancorp. It trades about 0.02 of its total potential returns per unit of risk. Blue Foundry Bancorp is currently generating about 0.28 per unit of volatility. 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 |
Bogota Financial Corp vs. Blue Foundry Bancorp
Performance |
| Timeline |
| Bogota Financial Corp |
| Blue Foundry Bancorp |
Bogota Financial and Blue Foundry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bogota Financial and Blue Foundry
The main advantage of trading using opposite Bogota Financial and Blue Foundry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bogota Financial position performs unexpectedly, Blue Foundry 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 Blue Foundry will offset losses from the drop in Blue Foundry's long position.| Bogota Financial vs. Home Federal Bancorp | Bogota Financial vs. First Financial Northwest | Bogota Financial vs. First Northwest Bancorp | Bogota Financial vs. First Capital |
| Blue Foundry vs. Home Federal Bancorp | Blue Foundry vs. Lake Shore Bancorp | Blue Foundry vs. Community West Bancshares | Blue Foundry vs. Bogota Financial Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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