Correlation Between US Century and Pathfinder Bancorp
Can any of the company-specific risk be diversified away by investing in both US Century and Pathfinder Bancorp 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 US Century and Pathfinder Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Century Bank and Pathfinder Bancorp, you can compare the effects of market volatilities on US Century and Pathfinder Bancorp 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 US Century with a short position of Pathfinder Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Century and Pathfinder Bancorp.
Diversification Opportunities for US Century and Pathfinder Bancorp
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between USCB and Pathfinder is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding US Century Bank and Pathfinder Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pathfinder Bancorp and US Century 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 US Century Bank are associated (or correlated) with Pathfinder Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pathfinder Bancorp has no effect on the direction of US Century i.e., US Century and Pathfinder Bancorp go up and down completely randomly.
Pair Corralation between US Century and Pathfinder Bancorp
Given the investment horizon of 90 days US Century Bank is expected to generate 0.94 times more return on investment than Pathfinder Bancorp. However, US Century Bank is 1.07 times less risky than Pathfinder Bancorp. It trades about 0.05 of its potential returns per unit of risk. Pathfinder Bancorp is currently generating about 0.02 per unit of risk. If you would invest 1,279 in US Century Bank on August 29, 2024 and sell it today you would earn a total of 758.00 from holding US Century Bank or generate 59.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.16% |
| Values | Daily Returns |
US Century Bank vs. Pathfinder Bancorp
Performance |
| Timeline |
| US Century Bank |
| Pathfinder Bancorp |
US Century and Pathfinder Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Century and Pathfinder Bancorp
The main advantage of trading using opposite US Century and Pathfinder Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Century position performs unexpectedly, Pathfinder Bancorp 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 Pathfinder Bancorp will offset losses from the drop in Pathfinder Bancorp's long position.| US Century vs. Bank of San | US Century vs. Pioneer Bankcorp | US Century vs. Liberty Northwest Bancorp | US Century vs. Summit Bancshares |
| Pathfinder Bancorp vs. Home Federal Bancorp | Pathfinder Bancorp vs. Lake Shore Bancorp | Pathfinder Bancorp vs. Magyar Bancorp | Pathfinder Bancorp vs. Community West Bancshares |
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
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |