Correlation Between SCOR PK and ConnectOne Bancorp

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

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

Diversification Opportunities for SCOR PK and ConnectOne Bancorp

0.54

Correlation Coefficient

SCOR PK  ConnectOne Bancorp

Very weak diversification

The 3 months correlation between SCOR and ConnectOne is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK and ConnectOne Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ConnectOne Bancorp and SCOR PK 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 SCOR PK are associated (or correlated) with ConnectOne Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ConnectOne Bancorp has no effect on the direction of SCOR PK i.e., SCOR PK and ConnectOne Bancorp go up and down completely randomly.

Pair Corralation between SCOR PK and ConnectOne Bancorp

Assuming the 90 days horizon SCOR PK is expected to under-perform the ConnectOne Bancorp. In addition to that, SCOR PK is 2.1 times more volatile than ConnectOne Bancorp. It trades about -0.01 of its total potential returns per unit of risk. ConnectOne Bancorp is currently generating about 0.08 per unit of volatility. If you would invest  1,601  in ConnectOne Bancorp on October 4, 2024 and sell it today you would earn a total of  649.00  from holding ConnectOne Bancorp or generate 40.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.09%
Values	Daily Returns

SCOR PK  vs.  ConnectOne Bancorp

SCOR PK

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SCOR PK are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, SCOR PK may actually be approaching a critical reversion point that can send shares even higher in February 2025.

ConnectOne Bancorp

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ConnectOne Bancorp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental drivers, ConnectOne Bancorp may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with SCOR PK and ConnectOne Bancorp

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

The idea behind SCOR PK and ConnectOne 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.