Correlation Between Cincinnati Bancorp and Pathfinder Bancorp

Can any of the company-specific risk be diversified away by investing in both Cincinnati Bancorp 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 Cincinnati Bancorp and Pathfinder Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cincinnati Bancorp and Pathfinder Bancorp, you can compare the effects of market volatilities on Cincinnati Bancorp 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 Cincinnati Bancorp with a short position of Pathfinder Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cincinnati Bancorp and Pathfinder Bancorp.

Diversification Opportunities for Cincinnati Bancorp and Pathfinder Bancorp

0.0

Correlation Coefficient

Cincinnati Bancorp  Pathfinder Bancorp

Pay attention - limited upside

The 3 months correlation between Cincinnati and Pathfinder is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cincinnati Bancorp and Pathfinder Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pathfinder Bancorp and Cincinnati 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 Cincinnati Bancorp 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 Cincinnati Bancorp i.e., Cincinnati Bancorp and Pathfinder Bancorp go up and down completely randomly.

Pair Corralation between Cincinnati Bancorp and Pathfinder Bancorp

If you would invest  1,690  in Pathfinder Bancorp on December 4, 2024 and sell it today you would earn a total of  31.00  from holding Pathfinder Bancorp or generate 1.83% return on investment over 90 days.

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

Cincinnati Bancorp  vs.  Pathfinder Bancorp

Cincinnati Bancorp

Risk-Adjusted Performance

Very Weak

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

Pathfinder Bancorp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pathfinder Bancorp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical indicators, Pathfinder Bancorp is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Cincinnati Bancorp and Pathfinder Bancorp

The main advantage of trading using opposite Cincinnati Bancorp and Pathfinder Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cincinnati Bancorp 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.

The idea behind Cincinnati Bancorp and Pathfinder Bancorp 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.