Correlation Between Amalgamated Bank and Blue Ridge

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

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

Diversification Opportunities for Amalgamated Bank and Blue Ridge

-0.41

Correlation Coefficient

Amalgamated Bank  Blue Ridge

Very good diversification

The 3 months correlation between Amalgamated and Blue is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amalgamated Bank and Blue Ridge Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Ridge Bankshares and Amalgamated Bank 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 Amalgamated Bank are associated (or correlated) with Blue Ridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Ridge Bankshares has no effect on the direction of Amalgamated Bank i.e., Amalgamated Bank and Blue Ridge go up and down completely randomly.

Pair Corralation between Amalgamated Bank and Blue Ridge

Given the investment horizon of 90 days Amalgamated Bank is expected to under-perform the Blue Ridge. But the stock apears to be less risky and, when comparing its historical volatility, Amalgamated Bank is 1.13 times less risky than Blue Ridge. The stock trades about -0.14 of its potential returns per unit of risk. The Blue Ridge Bankshares is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  355.00  in Blue Ridge Bankshares on July 11, 2025 and sell it today you would earn a total of  64.00  from holding Blue Ridge Bankshares or generate 18.03% return on investment over 90 days.

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

Amalgamated Bank  vs.  Blue Ridge Bankshares

Amalgamated Bank

Risk-Adjusted Performance

Weakest

Over the last 90 days Amalgamated Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in November 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Blue Ridge Bankshares

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Ridge Bankshares are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent fundamental drivers, Blue Ridge unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Amalgamated Bank and Blue Ridge

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

The idea behind Amalgamated Bank and Blue Ridge Bankshares 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.