Correlation Between Bank of New York and Cortland Bancorp
Can any of the company-specific risk be diversified away by investing in both Bank of New York and Cortland 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 Bank of New York and Cortland Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of New and Cortland Bancorp, you can compare the effects of market volatilities on Bank of New York and Cortland 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 Bank of New York with a short position of Cortland Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and Cortland Bancorp.
Diversification Opportunities for Bank of New York and Cortland Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Cortland is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of New and Cortland Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cortland Bancorp and Bank of New York 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 Bank of New are associated (or correlated) with Cortland Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cortland Bancorp has no effect on the direction of Bank of New York i.e., Bank of New York and Cortland Bancorp go up and down completely randomly.
Pair Corralation between Bank of New York and Cortland Bancorp
If you would invest 3,934 in Bank of New on January 19, 2024 and sell it today you would earn a total of 1,591 from holding Bank of New or generate 40.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of New vs. Cortland Bancorp
Performance |
| Timeline |
| Bank of New York |
| Cortland Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of New York and Cortland Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and Cortland Bancorp
The main advantage of trading using opposite Bank of New York and Cortland Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, Cortland 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 Cortland Bancorp will offset losses from the drop in Cortland Bancorp's long position.| Bank of New York vs. Invesco Plc | Bank of New York vs. Franklin Resources | Bank of New York vs. T Rowe Price | Bank of New York vs. SEI Investments |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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