Correlation Between CNB and Bank Utica
Can any of the company-specific risk be diversified away by investing in both CNB and Bank Utica 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 CNB and Bank Utica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNB Corporation and Bank Utica Ny, you can compare the effects of market volatilities on CNB and Bank Utica 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 CNB with a short position of Bank Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNB and Bank Utica.
Diversification Opportunities for CNB and Bank Utica
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CNB and Bank is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding CNB Corp. and Bank Utica Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Utica Ny and CNB 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 CNB Corporation are associated (or correlated) with Bank Utica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Utica Ny has no effect on the direction of CNB i.e., CNB and Bank Utica go up and down completely randomly.
Pair Corralation between CNB and Bank Utica
Given the investment horizon of 90 days CNB Corporation is expected to under-perform the Bank Utica. But the pink sheet apears to be less risky and, when comparing its historical volatility, CNB Corporation is 2.64 times less risky than Bank Utica. The pink sheet trades about -0.27 of its potential returns per unit of risk. The Bank Utica Ny is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 43,500 in Bank Utica Ny on August 29, 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 Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CNB Corp. vs. Bank Utica Ny
Performance |
| Timeline |
| CNB Corporation |
| Bank Utica Ny |
CNB and Bank Utica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CNB and Bank Utica
The main advantage of trading using opposite CNB and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNB position performs unexpectedly, Bank Utica 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 Bank Utica will offset losses from the drop in Bank Utica's long position.| CNB vs. Israel Discount Bank | CNB vs. Baraboo Bancorporation | CNB vs. Danske Bank AS | CNB vs. Jyske Bank AS |
| Bank Utica vs. CCSB Financial Corp | Bank Utica vs. Bank of Utica | Bank Utica vs. First Community Financial | Bank Utica vs. BEO 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets |