Correlation Between ConnectOne Bancorp and BlackRock
Can any of the company-specific risk be diversified away by investing in both ConnectOne Bancorp and BlackRock 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 ConnectOne Bancorp and BlackRock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConnectOne Bancorp and BlackRock, you can compare the effects of market volatilities on ConnectOne Bancorp and BlackRock 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 ConnectOne Bancorp with a short position of BlackRock. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConnectOne Bancorp and BlackRock.
Diversification Opportunities for ConnectOne Bancorp and BlackRock
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ConnectOne and BlackRock is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ConnectOne Bancorp and BlackRock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock and ConnectOne Bancorp 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 ConnectOne Bancorp are associated (or correlated) with BlackRock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock has no effect on the direction of ConnectOne Bancorp i.e., ConnectOne Bancorp and BlackRock go up and down completely randomly.
Pair Corralation between ConnectOne Bancorp and BlackRock
Assuming the 90 days horizon ConnectOne Bancorp is expected to generate 1.39 times less return on investment than BlackRock. In addition to that, ConnectOne Bancorp is 1.67 times more volatile than BlackRock. It trades about 0.03 of its total potential returns per unit of risk. BlackRock is currently generating about 0.07 per unit of volatility. If you would invest 71,482 in BlackRock on September 28, 2024 and sell it today you would earn a total of 33,946 from holding BlackRock or generate 47.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ConnectOne Bancorp vs. BlackRock
Performance |
| Timeline |
| ConnectOne Bancorp |
| BlackRock |
ConnectOne Bancorp and BlackRock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConnectOne Bancorp and BlackRock
The main advantage of trading using opposite ConnectOne Bancorp and BlackRock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConnectOne Bancorp position performs unexpectedly, BlackRock 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 BlackRock will offset losses from the drop in BlackRock's long position.| ConnectOne Bancorp vs. Dime Community Bancshares | ConnectOne Bancorp vs. Washington Federal | ConnectOne Bancorp vs. CNB Financial | ConnectOne Bancorp vs. First Guaranty Bancshares |
| BlackRock vs. Aquagold International | BlackRock vs. Morningstar Unconstrained Allocation | BlackRock vs. Thrivent High Yield | BlackRock vs. Via Renewables |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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