Correlation Between First National and Bank Utica
Can any of the company-specific risk be diversified away by investing in both First National 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 First National and Bank Utica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First National Bank and Bank Utica Ny, you can compare the effects of market volatilities on First National 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 First National with a short position of Bank Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of First National and Bank Utica.
Diversification Opportunities for First National and Bank Utica
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and Bank is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding First National Bank 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 First National 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 First National Bank 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 First National i.e., First National and Bank Utica go up and down completely randomly.
Pair Corralation between First National and Bank Utica
Given the investment horizon of 90 days First National is expected to generate 6.38 times less return on investment than Bank Utica. But when comparing it to its historical volatility, First National Bank is 1.38 times less risky than Bank Utica. It trades about 0.03 of its potential returns per unit of risk. Bank Utica Ny is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 47,000 in Bank Utica Ny on September 14, 2024 and sell it today you would earn a total of 4,000 from holding Bank Utica Ny or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First National Bank vs. Bank Utica Ny
Performance |
| Timeline |
| First National Bank |
| Bank Utica Ny |
First National and Bank Utica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First National and Bank Utica
The main advantage of trading using opposite First National and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National 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.| First National vs. IF Bancorp | First National vs. LINKBANCORP | First National vs. Pathfinder Bancorp | First National vs. First Keystone Corp |
| Bank Utica vs. PT Bank Rakyat | Bank Utica vs. Morningstar Unconstrained Allocation | Bank Utica vs. Bondbloxx ETF Trust | Bank Utica vs. Spring Valley Acquisition |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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