Correlation Between Inter Co and Rhinebeck Bancorp
Can any of the company-specific risk be diversified away by investing in both Inter Co and Rhinebeck 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 Inter Co and Rhinebeck Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inter Co Class and Rhinebeck Bancorp, you can compare the effects of market volatilities on Inter Co and Rhinebeck 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 Inter Co with a short position of Rhinebeck Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inter Co and Rhinebeck Bancorp.
Diversification Opportunities for Inter Co and Rhinebeck Bancorp
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Inter and Rhinebeck is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Inter Co Class and Rhinebeck Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rhinebeck Bancorp and Inter Co 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 Inter Co Class are associated (or correlated) with Rhinebeck Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rhinebeck Bancorp has no effect on the direction of Inter Co i.e., Inter Co and Rhinebeck Bancorp go up and down completely randomly.
Pair Corralation between Inter Co and Rhinebeck Bancorp
Given the investment horizon of 90 days Inter Co Class is expected to under-perform the Rhinebeck Bancorp. In addition to that, Inter Co is 1.84 times more volatile than Rhinebeck Bancorp. It trades about -0.18 of its total potential returns per unit of risk. Rhinebeck Bancorp is currently generating about 0.16 per unit of volatility. If you would invest 816.00 in Rhinebeck Bancorp on September 12, 2024 and sell it today you would earn a total of 150.00 from holding Rhinebeck Bancorp or generate 18.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inter Co Class vs. Rhinebeck Bancorp
Performance |
| Timeline |
| Inter Co Class |
| Rhinebeck Bancorp |
Inter Co and Rhinebeck Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inter Co and Rhinebeck Bancorp
The main advantage of trading using opposite Inter Co and Rhinebeck Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inter Co position performs unexpectedly, Rhinebeck 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 Rhinebeck Bancorp will offset losses from the drop in Rhinebeck Bancorp's long position.| Inter Co vs. Community West Bancshares | Inter Co vs. First Financial Northwest | Inter Co vs. First Northwest Bancorp | Inter Co vs. First Capital |
| Rhinebeck Bancorp vs. Home Federal Bancorp | Rhinebeck Bancorp vs. Community West Bancshares | Rhinebeck Bancorp vs. Magyar Bancorp | Rhinebeck Bancorp vs. First Financial Northwest |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |