Correlation Between Western New and Bogota Financial
Can any of the company-specific risk be diversified away by investing in both Western New and Bogota Financial 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 Western New and Bogota Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western New England and Bogota Financial Corp, you can compare the effects of market volatilities on Western New and Bogota Financial 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 Western New with a short position of Bogota Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western New and Bogota Financial.
Diversification Opportunities for Western New and Bogota Financial
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Bogota is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Western New England and Bogota Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bogota Financial Corp and Western New 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 Western New England are associated (or correlated) with Bogota Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bogota Financial Corp has no effect on the direction of Western New i.e., Western New and Bogota Financial go up and down completely randomly.
Pair Corralation between Western New and Bogota Financial
Given the investment horizon of 90 days Western New England is expected to generate 0.93 times more return on investment than Bogota Financial. However, Western New England is 1.08 times less risky than Bogota Financial. It trades about 0.09 of its potential returns per unit of risk. Bogota Financial Corp is currently generating about 0.08 per unit of risk. If you would invest 915.00 in Western New England on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Western New England or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Western New England vs. Bogota Financial Corp
Performance |
| Timeline |
| Western New England |
| Bogota Financial Corp |
Western New and Bogota Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western New and Bogota Financial
The main advantage of trading using opposite Western New and Bogota Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western New position performs unexpectedly, Bogota Financial 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 Bogota Financial will offset losses from the drop in Bogota Financial's long position.| Western New vs. US Bancorp | Western New vs. Truist Financial Corp | Western New vs. Fifth Third Bancorp | Western New vs. KeyCorp |
| Bogota Financial vs. Home Federal Bancorp | Bogota Financial vs. First Financial Northwest | Bogota Financial vs. First Northwest Bancorp | Bogota Financial 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| 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 |