Correlation Between NYSE Composite and Blackhawk Bancorp
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Blackhawk 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 NYSE Composite and Blackhawk Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Blackhawk Bancorp, you can compare the effects of market volatilities on NYSE Composite and Blackhawk 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 NYSE Composite with a short position of Blackhawk Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Blackhawk Bancorp.
Diversification Opportunities for NYSE Composite and Blackhawk Bancorp
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and Blackhawk is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Blackhawk Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackhawk Bancorp and NYSE Composite 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 NYSE Composite are associated (or correlated) with Blackhawk Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackhawk Bancorp has no effect on the direction of NYSE Composite i.e., NYSE Composite and Blackhawk Bancorp go up and down completely randomly.
Pair Corralation between NYSE Composite and Blackhawk Bancorp
Assuming the 90 days trading horizon NYSE Composite is expected to generate 4.8 times less return on investment than Blackhawk Bancorp. But when comparing it to its historical volatility, NYSE Composite is 2.46 times less risky than Blackhawk Bancorp. It trades about 0.1 of its potential returns per unit of risk. Blackhawk Bancorp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,805 in Blackhawk Bancorp on August 30, 2024 and sell it today you would earn a total of 545.00 from holding Blackhawk Bancorp or generate 19.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 13.71% |
| Values | Daily Returns |
NYSE Composite vs. Blackhawk Bancorp
Performance |
| Timeline |
NYSE Composite and Blackhawk Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Blackhawk Bancorp
Pair trading matchups for Blackhawk Bancorp
Pair Trading with NYSE Composite and Blackhawk Bancorp
The main advantage of trading using opposite NYSE Composite and Blackhawk Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Blackhawk 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 Blackhawk Bancorp will offset losses from the drop in Blackhawk Bancorp's long position.| NYSE Composite vs. Sphere Entertainment Co | NYSE Composite vs. Weibo Corp | NYSE Composite vs. BCE Inc | NYSE Composite vs. Pinterest |
| Blackhawk Bancorp vs. CCSB Financial Corp | Blackhawk Bancorp vs. Bank of Utica | Blackhawk Bancorp vs. First Community Financial | Blackhawk Bancorp vs. BEO 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |