Correlation Between Woodlands Financial and Bank Utica

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

Diversification Opportunities for Woodlands Financial and Bank Utica

0.31

Correlation Coefficient

Woodlands Financial  Bank Utica

Weak diversification

The 3 months correlation between Woodlands and Bank is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Woodlands Financial Services 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 Woodlands 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 Woodlands Financial Services 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 Woodlands Financial i.e., Woodlands Financial and Bank Utica go up and down completely randomly.

Pair Corralation between Woodlands Financial and Bank Utica

Given the investment horizon of 90 days Woodlands Financial is expected to generate 5.61 times less return on investment than Bank Utica. In addition to that, Woodlands Financial is 1.11 times more volatile than Bank Utica Ny. It trades about 0.02 of its total potential returns per unit of risk. Bank Utica Ny is currently generating about 0.1 per unit of volatility. If you would invest  41,500  in Bank Utica Ny on September 3, 2024 and sell it today you would earn a total of  4,001  from holding Bank Utica Ny or generate 9.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Woodlands Financial Services  vs.  Bank Utica Ny

Woodlands Financial

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Woodlands Financial Services are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy technical and fundamental indicators, Woodlands Financial is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Bank Utica Ny

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bank Utica Ny are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Bank Utica may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Woodlands Financial and Bank Utica

The main advantage of trading using opposite Woodlands Financial and Bank Utica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woodlands 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 Woodlands Financial Services 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.