Correlation Between Pioneer Bancorp and Pathfinder Bancorp
Can any of the company-specific risk be diversified away by investing in both Pioneer Bancorp and Pathfinder 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 Pioneer Bancorp and Pathfinder Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer Bancorp and Pathfinder Bancorp, you can compare the effects of market volatilities on Pioneer Bancorp and Pathfinder 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 Pioneer Bancorp with a short position of Pathfinder Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer Bancorp and Pathfinder Bancorp.
Diversification Opportunities for Pioneer Bancorp and Pathfinder Bancorp
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pioneer and Pathfinder is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Bancorp and Pathfinder Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pathfinder Bancorp and Pioneer 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 Pioneer Bancorp are associated (or correlated) with Pathfinder Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pathfinder Bancorp has no effect on the direction of Pioneer Bancorp i.e., Pioneer Bancorp and Pathfinder Bancorp go up and down completely randomly.
Pair Corralation between Pioneer Bancorp and Pathfinder Bancorp
Given the investment horizon of 90 days Pioneer Bancorp is expected to generate 1.06 times more return on investment than Pathfinder Bancorp. However, Pioneer Bancorp is 1.06 times more volatile than Pathfinder Bancorp. It trades about 0.23 of its potential returns per unit of risk. Pathfinder Bancorp is currently generating about 0.17 per unit of risk. If you would invest 1,113 in Pioneer Bancorp on November 18, 2024 and sell it today you would earn a total of 74.00 from holding Pioneer Bancorp or generate 6.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pioneer Bancorp vs. Pathfinder Bancorp
Performance |
| Timeline |
| Pioneer Bancorp |
| Pathfinder Bancorp |
Pioneer Bancorp and Pathfinder Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer Bancorp and Pathfinder Bancorp
The main advantage of trading using opposite Pioneer Bancorp and Pathfinder Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Bancorp position performs unexpectedly, Pathfinder 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 Pathfinder Bancorp will offset losses from the drop in Pathfinder Bancorp's long position.| Pioneer Bancorp vs. Home Federal Bancorp | Pioneer Bancorp vs. Lake Shore Bancorp | Pioneer Bancorp vs. Community West Bancshares | Pioneer Bancorp vs. Magyar Bancorp |
| Pathfinder Bancorp vs. Home Federal Bancorp | Pathfinder Bancorp vs. Lake Shore Bancorp | Pathfinder Bancorp vs. Magyar Bancorp | Pathfinder 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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