Correlation Between Everspin Technologies and BCB Bancorp
Can any of the company-specific risk be diversified away by investing in both Everspin Technologies and BCB 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 Everspin Technologies and BCB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everspin Technologies and BCB Bancorp, you can compare the effects of market volatilities on Everspin Technologies and BCB 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 Everspin Technologies with a short position of BCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everspin Technologies and BCB Bancorp.
Diversification Opportunities for Everspin Technologies and BCB Bancorp
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Everspin and BCB is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Everspin Technologies and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp and Everspin Technologies 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 Everspin Technologies are associated (or correlated) with BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of Everspin Technologies i.e., Everspin Technologies and BCB Bancorp go up and down completely randomly.
Pair Corralation between Everspin Technologies and BCB Bancorp
Given the investment horizon of 90 days Everspin Technologies is expected to under-perform the BCB Bancorp. In addition to that, Everspin Technologies is 1.14 times more volatile than BCB Bancorp. It trades about -0.03 of its total potential returns per unit of risk. BCB Bancorp is currently generating about 0.08 per unit of volatility. If you would invest 1,005 in BCB Bancorp on August 27, 2024 and sell it today you would earn a total of 345.00 from holding BCB Bancorp or generate 34.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Everspin Technologies vs. BCB Bancorp
Performance |
| Timeline |
| Everspin Technologies |
| BCB Bancorp |
Everspin Technologies and BCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everspin Technologies and BCB Bancorp
The main advantage of trading using opposite Everspin Technologies and BCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everspin Technologies position performs unexpectedly, BCB 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 BCB Bancorp will offset losses from the drop in BCB Bancorp's long position.| Everspin Technologies vs. MACOM Technology Solutions | Everspin Technologies vs. Power Integrations | Everspin Technologies vs. Diodes Incorporated | Everspin Technologies vs. CEVA Inc |
| BCB Bancorp vs. Provident Financial Services | BCB Bancorp vs. First Mid Illinois | BCB Bancorp vs. ConnectOne Bancorp | BCB Bancorp vs. Finward Bancorp |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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