Correlation Between NYSE Composite and Bank Utica
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Bank Utica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Bank Utica Ny, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Bank Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Bank Utica.
Diversification Opportunities for NYSE Composite and Bank Utica
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NYSE and Bank is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 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 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 NYSE Composite i.e., NYSE Composite and Bank Utica go up and down completely randomly.
Pair Corralation between NYSE Composite and Bank Utica
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.86 times less return on investment than Bank Utica. But when comparing it to its historical volatility, NYSE Composite is 3.16 times less risky than Bank Utica. It trades about 0.08 of its potential returns per unit of risk. Bank Utica Ny is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 36,466 in Bank Utica Ny on November 19, 2024 and sell it today you would earn a total of 10,009 from holding Bank Utica Ny or generate 27.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.62% |
| Values | Daily Returns |
NYSE Composite vs. Bank Utica Ny
Performance |
| Timeline |
NYSE Composite and Bank Utica Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Bank Utica Ny
Pair trading matchups for Bank Utica
Pair Trading with NYSE Composite and Bank Utica
The main advantage of trading using opposite NYSE Composite and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Regeneron Pharmaceuticals | NYSE Composite vs. Compania Cervecerias Unidas | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Monster Beverage Corp |
| Bank Utica vs. CCSB Financial Corp | Bank Utica vs. Bank of Utica | Bank Utica vs. First Community Financial | Bank Utica 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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