Correlation Between Bank of Utica and Keweenaw Financial

Can any of the company-specific risk be diversified away by investing in both Bank of Utica and Keweenaw 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 Bank of Utica and Keweenaw Financial 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 Keweenaw Financial, you can compare the effects of market volatilities on Bank of Utica and Keweenaw 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 Bank of Utica with a short position of Keweenaw Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Utica and Keweenaw Financial.

Diversification Opportunities for Bank of Utica and Keweenaw Financial

0.0

Correlation Coefficient

Bank of Utica  Keweenaw Financial

Pay attention - limited upside

The 3 months correlation between Bank and Keweenaw is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Utica and Keweenaw Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keweenaw Financial 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 Keweenaw Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keweenaw Financial has no effect on the direction of Bank of Utica i.e., Bank of Utica and Keweenaw Financial go up and down completely randomly.

Pair Corralation between Bank of Utica and Keweenaw Financial

If you would invest  54,100  in Bank of Utica on October 20, 2024 and sell it today you would earn a total of  0.00  from holding Bank of Utica or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bank of Utica  vs.  Keweenaw Financial

Bank of Utica

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bank of Utica are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Bank of Utica unveiled solid returns over the last few months and may actually be approaching a breakup point.

Keweenaw Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Keweenaw Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Keweenaw Financial is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Bank of Utica and Keweenaw Financial

The main advantage of trading using opposite Bank of Utica and Keweenaw Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Utica position performs unexpectedly, Keweenaw 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 Keweenaw Financial will offset losses from the drop in Keweenaw Financial's long position.

The idea behind Bank of Utica and Keweenaw Financial 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.

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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.