Correlation Between Rhinebeck Bancorp and TrustCo Bank
Can any of the company-specific risk be diversified away by investing in both Rhinebeck Bancorp and TrustCo Bank 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 TrustCo Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rhinebeck Bancorp and TrustCo Bank Corp, you can compare the effects of market volatilities on Rhinebeck Bancorp and TrustCo Bank 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 TrustCo Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rhinebeck Bancorp and TrustCo Bank.
Diversification Opportunities for Rhinebeck Bancorp and TrustCo Bank
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rhinebeck and TrustCo is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Rhinebeck Bancorp and TrustCo Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrustCo Bank Corp 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 TrustCo Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrustCo Bank Corp has no effect on the direction of Rhinebeck Bancorp i.e., Rhinebeck Bancorp and TrustCo Bank go up and down completely randomly.
Pair Corralation between Rhinebeck Bancorp and TrustCo Bank
Given the investment horizon of 90 days Rhinebeck Bancorp is expected to generate 0.76 times more return on investment than TrustCo Bank. However, Rhinebeck Bancorp is 1.32 times less risky than TrustCo Bank. It trades about 0.16 of its potential returns per unit of risk. TrustCo Bank Corp is currently generating about 0.08 per unit of risk. If you would invest 820.00 in Rhinebeck Bancorp on September 13, 2024 and sell it today you would earn a total of 146.00 from holding Rhinebeck Bancorp or generate 17.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rhinebeck Bancorp vs. TrustCo Bank Corp
Performance |
| Timeline |
| Rhinebeck Bancorp |
| TrustCo Bank Corp |
Rhinebeck Bancorp and TrustCo Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rhinebeck Bancorp and TrustCo Bank
The main advantage of trading using opposite Rhinebeck Bancorp and TrustCo Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rhinebeck Bancorp position performs unexpectedly, TrustCo Bank 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 TrustCo Bank will offset losses from the drop in TrustCo Bank's 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 |
| TrustCo Bank vs. Southern Missouri Bancorp | TrustCo Bank vs. IF Bancorp | TrustCo Bank vs. Colony Bankcorp | TrustCo Bank vs. Old Point Financial |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |