Correlation Between Rhinebeck Bancorp and Ottawa Savings
Can any of the company-specific risk be diversified away by investing in both Rhinebeck Bancorp and Ottawa Savings 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 Rhinebeck Bancorp and Ottawa Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rhinebeck Bancorp and Ottawa Savings Bancorp, you can compare the effects of market volatilities on Rhinebeck Bancorp and Ottawa Savings 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 Rhinebeck Bancorp with a short position of Ottawa Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rhinebeck Bancorp and Ottawa Savings.
Diversification Opportunities for Rhinebeck Bancorp and Ottawa Savings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Rhinebeck and Ottawa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rhinebeck Bancorp and Ottawa Savings Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ottawa Savings Bancorp and Rhinebeck 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 Rhinebeck Bancorp are associated (or correlated) with Ottawa Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ottawa Savings Bancorp has no effect on the direction of Rhinebeck Bancorp i.e., Rhinebeck Bancorp and Ottawa Savings go up and down completely randomly.
Pair Corralation between Rhinebeck Bancorp and Ottawa Savings
If you would invest 996.00 in Rhinebeck Bancorp on November 28, 2024 and sell it today you would earn a total of 17.00 from holding Rhinebeck Bancorp or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Rhinebeck Bancorp vs. Ottawa Savings Bancorp
Performance |
| Timeline |
| Rhinebeck Bancorp |
| Ottawa Savings Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Rhinebeck Bancorp and Ottawa Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rhinebeck Bancorp and Ottawa Savings
The main advantage of trading using opposite Rhinebeck Bancorp and Ottawa Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rhinebeck Bancorp position performs unexpectedly, Ottawa Savings 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 Ottawa Savings will offset losses from the drop in Ottawa Savings' long position.| Rhinebeck Bancorp vs. Home Federal Bancorp | Rhinebeck Bancorp vs. Community West Bancshares | Rhinebeck Bancorp vs. Magyar Bancorp | Rhinebeck Bancorp vs. First Financial Northwest |
| Ottawa Savings vs. Lake Shore Bancorp | Ottawa Savings vs. IF Bancorp | Ottawa Savings vs. Home Federal 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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