Correlation Between Private Bancorp and Bank of Utica
Can any of the company-specific risk be diversified away by investing in both Private Bancorp and Bank of 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 Private Bancorp and Bank of Utica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Private Bancorp of and Bank of Utica, you can compare the effects of market volatilities on Private Bancorp and Bank of 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 Private Bancorp with a short position of Bank of Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Private Bancorp and Bank of Utica.
Diversification Opportunities for Private Bancorp and Bank of Utica
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Private and Bank is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Private Bancorp of and Bank of Utica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Utica and Private Bancorp 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 Private Bancorp of are associated (or correlated) with Bank of 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 of Utica has no effect on the direction of Private Bancorp i.e., Private Bancorp and Bank of Utica go up and down completely randomly.
Pair Corralation between Private Bancorp and Bank of Utica
Given the investment horizon of 90 days Private Bancorp is expected to generate 5.59 times less return on investment than Bank of Utica. In addition to that, Private Bancorp is 1.04 times more volatile than Bank of Utica. It trades about 0.06 of its total potential returns per unit of risk. Bank of Utica is currently generating about 0.34 per unit of volatility. If you would invest 45,000 in Bank of Utica on August 26, 2024 and sell it today you would earn a total of 3,800 from holding Bank of Utica or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Private Bancorp of vs. Bank of Utica
Performance |
| Timeline |
| Private Bancorp |
| Bank of Utica |
Private Bancorp and Bank of Utica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Private Bancorp and Bank of Utica
The main advantage of trading using opposite Private Bancorp and Bank of Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Private Bancorp position performs unexpectedly, Bank of 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 of Utica will offset losses from the drop in Bank of Utica's long position.| Private Bancorp vs. Prime Meridian Holding | Private Bancorp vs. Mainstreet Bank | Private Bancorp vs. Avidbank Holdings | Private Bancorp vs. Heartland Banccorp |
| Bank of Utica vs. Standard Bank Group | Bank of Utica vs. PSB Holdings | Bank of Utica vs. United Overseas Bank | Bank of Utica vs. Turkiye Garanti Bankasi |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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