Correlation Between NYSE Composite and PB Bankshares
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and PB Bankshares 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 PB Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and PB Bankshares, you can compare the effects of market volatilities on NYSE Composite and PB Bankshares 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 PB Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and PB Bankshares.
Diversification Opportunities for NYSE Composite and PB Bankshares
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and PBBK is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and PB Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PB Bankshares 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 PB Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PB Bankshares has no effect on the direction of NYSE Composite i.e., NYSE Composite and PB Bankshares go up and down completely randomly.
Pair Corralation between NYSE Composite and PB Bankshares
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.72 times more return on investment than PB Bankshares. However, NYSE Composite is 1.39 times less risky than PB Bankshares. It trades about 0.41 of its potential returns per unit of risk. PB Bankshares is currently generating about -0.29 per unit of risk. If you would invest 1,925,354 in NYSE Composite on September 2, 2024 and sell it today you would earn a total of 101,850 from holding NYSE Composite or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. PB Bankshares
Performance |
| Timeline |
NYSE Composite and PB Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
PB Bankshares
Pair trading matchups for PB Bankshares
Pair Trading with NYSE Composite and PB Bankshares
The main advantage of trading using opposite NYSE Composite and PB Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, PB Bankshares 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 PB Bankshares will offset losses from the drop in PB Bankshares' long position.| NYSE Composite vs. Simon Property Group | NYSE Composite vs. Merit Medical Systems | NYSE Composite vs. Catalent | NYSE Composite vs. Titan Machinery |
| PB Bankshares vs. Nmb Financial Corp | PB Bankshares vs. Japan Post Holdings | PB Bankshares vs. Bank Utica Ny | PB Bankshares vs. Auburn 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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