Correlation Between 694308KE6 and BCB Bancorp

Can any of the company-specific risk be diversified away by investing in both 694308KE6 and BCB 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 694308KE6 and BCB Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PCG 495 08 JUN 25 and BCB Bancorp, you can compare the effects of market volatilities on 694308KE6 and BCB 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 694308KE6 with a short position of BCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308KE6 and BCB Bancorp.

Diversification Opportunities for 694308KE6 and BCB Bancorp

-0.08

Correlation Coefficient

694308KE6  BCB Bancorp

Good diversification

The 3 months correlation between 694308KE6 and BCB is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PCG 495 08 JUN 25 and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp and 694308KE6 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 PCG 495 08 JUN 25 are associated (or correlated) with BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of 694308KE6 i.e., 694308KE6 and BCB Bancorp go up and down completely randomly.

Pair Corralation between 694308KE6 and BCB Bancorp

Assuming the 90 days trading horizon PCG 495 08 JUN 25 is expected to generate 0.11 times more return on investment than BCB Bancorp. However, PCG 495 08 JUN 25 is 9.27 times less risky than BCB Bancorp. It trades about 0.01 of its potential returns per unit of risk. BCB Bancorp is currently generating about -0.11 per unit of risk. If you would invest  9,990  in PCG 495 08 JUN 25 on December 25, 2024 and sell it today you would earn a total of  8.00  from holding PCG 495 08 JUN 25 or generate 0.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PCG 495 08 JUN 25  vs.  BCB Bancorp

PCG 495 08

Risk-Adjusted Performance

Very Weak

Over the last 90 days PCG 495 08 JUN 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 694308KE6 is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

BCB Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days BCB Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's fundamental drivers remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with 694308KE6 and BCB Bancorp

The main advantage of trading using opposite 694308KE6 and BCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308KE6 position performs unexpectedly, BCB 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 BCB Bancorp will offset losses from the drop in BCB Bancorp's long position.

The idea behind PCG 495 08 JUN 25 and BCB 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..