Correlation Between Southern Banc and Bank Utica
Can any of the company-specific risk be diversified away by investing in both Southern Banc and Bank 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 Southern Banc and Bank Utica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southern Banc and Bank Utica Ny, you can compare the effects of market volatilities on Southern Banc and Bank 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 Southern Banc with a short position of Bank Utica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southern Banc and Bank Utica.
Diversification Opportunities for Southern Banc and Bank Utica
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Southern and Bank is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Southern Banc and Bank Utica Ny in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Utica Ny and Southern Banc 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 Southern Banc are associated (or correlated) with Bank 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 Utica Ny has no effect on the direction of Southern Banc i.e., Southern Banc and Bank Utica go up and down completely randomly.
Pair Corralation between Southern Banc and Bank Utica
If you would invest 33,399 in Bank Utica Ny on September 14, 2024 and sell it today you would earn a total of 17,601 from holding Bank Utica Ny or generate 52.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.38% |
| Values | Daily Returns |
Southern Banc vs. Bank Utica Ny
Performance |
| Timeline |
| Southern Banc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bank Utica Ny |
Southern Banc and Bank Utica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southern Banc and Bank Utica
The main advantage of trading using opposite Southern Banc and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southern Banc position performs unexpectedly, Bank 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 Utica will offset losses from the drop in Bank Utica's long position.| Southern Banc vs. 1895 of Wisconsin | Southern Banc vs. OptimumBank Holdings | Southern Banc vs. First National Bank | Southern Banc vs. CNB Financial |
| Bank Utica vs. PT Bank Rakyat | Bank Utica vs. Morningstar Unconstrained Allocation | Bank Utica vs. Bondbloxx ETF Trust | Bank Utica vs. Spring Valley Acquisition |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |