Correlation Between Kentucky First and Bank Utica
Can any of the company-specific risk be diversified away by investing in both Kentucky First 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 Kentucky First and Bank Utica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kentucky First Federal and Bank Utica Ny, you can compare the effects of market volatilities on Kentucky First 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 Kentucky First with a short position of Bank Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kentucky First and Bank Utica.
Diversification Opportunities for Kentucky First and Bank Utica
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kentucky and Bank is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Kentucky First Federal 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 Kentucky First 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 Kentucky First Federal 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 Kentucky First i.e., Kentucky First and Bank Utica go up and down completely randomly.
Pair Corralation between Kentucky First and Bank Utica
Given the investment horizon of 90 days Kentucky First Federal is expected to generate 1.24 times more return on investment than Bank Utica. However, Kentucky First is 1.24 times more volatile than Bank Utica Ny. It trades about 0.13 of its potential returns per unit of risk. Bank Utica Ny is currently generating about 0.15 per unit of risk. If you would invest 258.00 in Kentucky First Federal on September 14, 2024 and sell it today you would earn a total of 22.00 from holding Kentucky First Federal or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kentucky First Federal vs. Bank Utica Ny
Performance |
| Timeline |
| Kentucky First Federal |
| Bank Utica Ny |
Kentucky First and Bank Utica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kentucky First and Bank Utica
The main advantage of trading using opposite Kentucky First and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kentucky First 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.| Kentucky First vs. Home Federal Bancorp | Kentucky First vs. Lake Shore Bancorp | Kentucky First vs. Commerzbank AG | Kentucky First vs. Investar Holding 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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