Correlation Between BCB Bancorp and 00164VAF0

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Can any of the company-specific risk be diversified away by investing in both BCB Bancorp and 00164VAF0 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 BCB Bancorp and 00164VAF0 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCB Bancorp and AMC Networks 425, you can compare the effects of market volatilities on BCB Bancorp and 00164VAF0 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 BCB Bancorp with a short position of 00164VAF0. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCB Bancorp and 00164VAF0.

Diversification Opportunities for BCB Bancorp and 00164VAF0

0.16
  Correlation Coefficient

Average diversification

The 3 months correlation between BCB and 00164VAF0 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding BCB Bancorp and AMC Networks 425 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Networks 425 and BCB 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 BCB Bancorp are associated (or correlated) with 00164VAF0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Networks 425 has no effect on the direction of BCB Bancorp i.e., BCB Bancorp and 00164VAF0 go up and down completely randomly.

Pair Corralation between BCB Bancorp and 00164VAF0

Given the investment horizon of 90 days BCB Bancorp is expected to generate 0.9 times more return on investment than 00164VAF0. However, BCB Bancorp is 1.11 times less risky than 00164VAF0. It trades about 0.03 of its potential returns per unit of risk. AMC Networks 425 is currently generating about -0.04 per unit of risk. If you would invest  1,232  in BCB Bancorp on September 13, 2024 and sell it today you would earn a total of  39.00  from holding BCB Bancorp or generate 3.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy96.83%
ValuesDaily Returns

BCB Bancorp  vs.  AMC Networks 425

 Performance 
       Timeline  
BCB Bancorp 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in BCB Bancorp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable fundamental drivers, BCB Bancorp is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.
AMC Networks 425 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days AMC Networks 425 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 00164VAF0 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

BCB Bancorp and 00164VAF0 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BCB Bancorp and 00164VAF0

The main advantage of trading using opposite BCB Bancorp and 00164VAF0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCB Bancorp position performs unexpectedly, 00164VAF0 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 00164VAF0 will offset losses from the drop in 00164VAF0's long position.
The idea behind BCB Bancorp and AMC Networks 425 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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