Correlation Between Pathfinder Bancorp and American Riviera
Can any of the company-specific risk be diversified away by investing in both Pathfinder Bancorp and American Riviera 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 Pathfinder Bancorp and American Riviera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pathfinder Bancorp and American Riviera Bank, you can compare the effects of market volatilities on Pathfinder Bancorp and American Riviera 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 Pathfinder Bancorp with a short position of American Riviera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pathfinder Bancorp and American Riviera.
Diversification Opportunities for Pathfinder Bancorp and American Riviera
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pathfinder and American is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Pathfinder Bancorp and American Riviera Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Riviera Bank and Pathfinder 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 Pathfinder Bancorp are associated (or correlated) with American Riviera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Riviera Bank has no effect on the direction of Pathfinder Bancorp i.e., Pathfinder Bancorp and American Riviera go up and down completely randomly.
Pair Corralation between Pathfinder Bancorp and American Riviera
Given the investment horizon of 90 days Pathfinder Bancorp is expected to under-perform the American Riviera. In addition to that, Pathfinder Bancorp is 3.26 times more volatile than American Riviera Bank. It trades about 0.0 of its total potential returns per unit of risk. American Riviera Bank is currently generating about 0.05 per unit of volatility. If you would invest 1,974 in American Riviera Bank on August 30, 2024 and sell it today you would earn a total of 13.00 from holding American Riviera Bank or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pathfinder Bancorp vs. American Riviera Bank
Performance |
| Timeline |
| Pathfinder Bancorp |
| American Riviera Bank |
Pathfinder Bancorp and American Riviera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pathfinder Bancorp and American Riviera
The main advantage of trading using opposite Pathfinder Bancorp and American Riviera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pathfinder Bancorp position performs unexpectedly, American Riviera 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 American Riviera will offset losses from the drop in American Riviera's long position.| Pathfinder Bancorp vs. Home Federal Bancorp | Pathfinder Bancorp vs. Lake Shore Bancorp | Pathfinder Bancorp vs. Magyar Bancorp | Pathfinder Bancorp vs. Community West Bancshares |
| American Riviera vs. Invesco High Income | American Riviera vs. Blackrock Muniholdings Ny | American Riviera vs. Nuveen California Select | American Riviera vs. MFS Investment Grade |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |