Correlation Between Empire State and Customers Bancorp
Can any of the company-specific risk be diversified away by investing in both Empire State and Customers 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 Empire State and Customers Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Customers Bancorp, you can compare the effects of market volatilities on Empire State and Customers 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 Empire State with a short position of Customers Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Customers Bancorp.
Diversification Opportunities for Empire State and Customers Bancorp
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Empire and Customers is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and Customers Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Customers Bancorp and Empire State 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 Empire State Realty are associated (or correlated) with Customers Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Customers Bancorp has no effect on the direction of Empire State i.e., Empire State and Customers Bancorp go up and down completely randomly.
Pair Corralation between Empire State and Customers Bancorp
Given the investment horizon of 90 days Empire State Realty is expected to generate 1.13 times more return on investment than Customers Bancorp. However, Empire State is 1.13 times more volatile than Customers Bancorp. It trades about 0.06 of its potential returns per unit of risk. Customers Bancorp is currently generating about 0.02 per unit of risk. If you would invest 871.00 in Empire State Realty on September 1, 2024 and sell it today you would earn a total of 225.00 from holding Empire State Realty or generate 25.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Empire State Realty vs. Customers Bancorp
Performance |
| Timeline |
| Empire State Realty |
| Customers Bancorp |
Empire State and Customers Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Customers Bancorp
The main advantage of trading using opposite Empire State and Customers Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State position performs unexpectedly, Customers 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 Customers Bancorp will offset losses from the drop in Customers Bancorp's long position.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| Customers Bancorp vs. CMS Energy Corp | Customers Bancorp vs. CMS Energy Corp | Customers Bancorp vs. American Financial Group | Customers Bancorp vs. Eagle Point Credit |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Correlations Find global opportunities by holding instruments from different markets |