Correlation Between Ottawa Savings and NBT Bancorp
Can any of the company-specific risk be diversified away by investing in both Ottawa Savings and NBT 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 Ottawa Savings and NBT Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ottawa Savings Bancorp and NBT Bancorp, you can compare the effects of market volatilities on Ottawa Savings and NBT 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 Ottawa Savings with a short position of NBT Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ottawa Savings and NBT Bancorp.
Diversification Opportunities for Ottawa Savings and NBT Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ottawa and NBT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ottawa Savings Bancorp and NBT Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NBT Bancorp and Ottawa Savings 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 Ottawa Savings Bancorp are associated (or correlated) with NBT Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NBT Bancorp has no effect on the direction of Ottawa Savings i.e., Ottawa Savings and NBT Bancorp go up and down completely randomly.
Pair Corralation between Ottawa Savings and NBT Bancorp
If you would invest 3,373 in NBT Bancorp on September 2, 2024 and sell it today you would earn a total of 1,639 from holding NBT Bancorp or generate 48.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
Ottawa Savings Bancorp vs. NBT Bancorp
Performance |
| Timeline |
| Ottawa Savings Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NBT Bancorp |
Ottawa Savings and NBT Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ottawa Savings and NBT Bancorp
The main advantage of trading using opposite Ottawa Savings and NBT Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ottawa Savings position performs unexpectedly, NBT 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 NBT Bancorp will offset losses from the drop in NBT Bancorp's long position.| Ottawa Savings vs. Lake Shore Bancorp | Ottawa Savings vs. IF Bancorp | Ottawa Savings vs. Home Federal Bancorp |
| NBT Bancorp vs. Oak Valley Bancorp | NBT Bancorp vs. Home Federal Bancorp | NBT Bancorp vs. Finward Bancorp | NBT Bancorp vs. Community West Bancshares |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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