Correlation Between Keweenaw Financial and Bank Utica

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

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

Diversification Opportunities for Keweenaw Financial and Bank Utica

0.0

Correlation Coefficient

Keweenaw Financial  Bank Utica

Pay attention - limited upside

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

Pair Corralation between Keweenaw Financial and Bank Utica

If you would invest  41,500  in Bank Utica Ny on September 15, 2024 and sell it today you would earn a total of  8,300  from holding Bank Utica Ny or generate 20.0% return on investment over 90 days.

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

Keweenaw Financial  vs.  Bank Utica Ny

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.

Bank Utica Ny

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bank Utica Ny are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, Bank Utica disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Keweenaw Financial and Bank Utica

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

The idea behind Keweenaw Financial and Bank Utica Ny 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.