Correlation Between TrustCo Bank and Inter Co
Can any of the company-specific risk be diversified away by investing in both TrustCo Bank and Inter Co 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 TrustCo Bank and Inter Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TrustCo Bank Corp and Inter Co Class, you can compare the effects of market volatilities on TrustCo Bank and Inter Co 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 TrustCo Bank with a short position of Inter Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of TrustCo Bank and Inter Co.
Diversification Opportunities for TrustCo Bank and Inter Co
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TrustCo and Inter is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding TrustCo Bank Corp and Inter Co Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Co Class and TrustCo Bank 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 TrustCo Bank Corp are associated (or correlated) with Inter Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Co Class has no effect on the direction of TrustCo Bank i.e., TrustCo Bank and Inter Co go up and down completely randomly.
Pair Corralation between TrustCo Bank and Inter Co
Given the investment horizon of 90 days TrustCo Bank Corp is expected to generate 0.72 times more return on investment than Inter Co. However, TrustCo Bank Corp is 1.39 times less risky than Inter Co. It trades about 0.1 of its potential returns per unit of risk. Inter Co Class is currently generating about -0.18 per unit of risk. If you would invest 3,216 in TrustCo Bank Corp on September 12, 2024 and sell it today you would earn a total of 445.00 from holding TrustCo Bank Corp or generate 13.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TrustCo Bank Corp vs. Inter Co Class
Performance |
| Timeline |
| TrustCo Bank Corp |
| Inter Co Class |
TrustCo Bank and Inter Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TrustCo Bank and Inter Co
The main advantage of trading using opposite TrustCo Bank and Inter Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TrustCo Bank position performs unexpectedly, Inter Co 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 Inter Co will offset losses from the drop in Inter Co's long position.| TrustCo Bank vs. Southern Missouri Bancorp | TrustCo Bank vs. IF Bancorp | TrustCo Bank vs. Colony Bankcorp | TrustCo Bank vs. Old Point Financial |
| Inter Co vs. Community West Bancshares | Inter Co vs. First Financial Northwest | Inter Co vs. First Northwest Bancorp | Inter Co vs. First Capital |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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