Correlation Between Bank of Utica and FNB
Can any of the company-specific risk be diversified away by investing in both Bank of Utica and FNB 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 Bank of Utica and FNB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Utica and FNB Inc, you can compare the effects of market volatilities on Bank of Utica and FNB 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 Bank of Utica with a short position of FNB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Utica and FNB.
Diversification Opportunities for Bank of Utica and FNB
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bank and FNB is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Utica and FNB Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB Inc and Bank of Utica 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 Bank of Utica are associated (or correlated) with FNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB Inc has no effect on the direction of Bank of Utica i.e., Bank of Utica and FNB go up and down completely randomly.
Pair Corralation between Bank of Utica and FNB
Given the investment horizon of 90 days Bank of Utica is expected to generate 1.35 times less return on investment than FNB. In addition to that, Bank of Utica is 1.07 times more volatile than FNB Inc. It trades about 0.05 of its total potential returns per unit of risk. FNB Inc is currently generating about 0.07 per unit of volatility. If you would invest 1,900 in FNB Inc on September 12, 2024 and sell it today you would earn a total of 500.00 from holding FNB Inc or generate 26.32% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 76.33% |
Values | Daily Returns |
Bank of Utica vs. FNB Inc
Performance |
Timeline |
Bank of Utica |
FNB Inc |
Bank of Utica and FNB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Utica and FNB
The main advantage of trading using opposite Bank of Utica and FNB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Utica position performs unexpectedly, FNB 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 FNB will offset losses from the drop in FNB's long position.Bank of Utica vs. PT Bank Rakyat | Bank of Utica vs. Morningstar Unconstrained Allocation | Bank of Utica vs. Bondbloxx ETF Trust | Bank of Utica vs. Spring Valley Acquisition |
FNB vs. PT Bank Rakyat | FNB vs. Morningstar Unconstrained Allocation | FNB vs. Bondbloxx ETF Trust | FNB 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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