Correlation Between Amalgamated Bank and Tompkins Financial

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

By analyzing existing cross correlation between Amalgamated Bank and Tompkins Financial, you can compare the effects of market volatilities on Amalgamated Bank and Tompkins Financial 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 Tompkins Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amalgamated Bank and Tompkins Financial.

Diversification Opportunities for Amalgamated Bank and Tompkins Financial

0.76

Correlation Coefficient

Amalgamated Bank  Tompkins Financial

Poor diversification

The 3 months correlation between Amalgamated and Tompkins is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Amalgamated Bank and Tompkins Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tompkins Financial 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 Tompkins Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tompkins Financial has no effect on the direction of Amalgamated Bank i.e., Amalgamated Bank and Tompkins Financial go up and down completely randomly.

Pair Corralation between Amalgamated Bank and Tompkins Financial

Given the investment horizon of 90 days Amalgamated Bank is expected to generate 1.03 times more return on investment than Tompkins Financial. However, Amalgamated Bank is 1.03 times more volatile than Tompkins Financial. It trades about 0.11 of its potential returns per unit of risk. Tompkins Financial is currently generating about 0.05 per unit of risk. If you would invest  2,654  in Amalgamated Bank on August 23, 2025 and sell it today you would earn a total of  117.00  from holding Amalgamated Bank or generate 4.41% return on investment over 90 days.

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

Amalgamated Bank  vs.  Tompkins Financial

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 quite persistent basic indicators, Amalgamated Bank is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Tompkins Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Tompkins Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Tompkins Financial is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Amalgamated Bank and Tompkins Financial

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

The idea behind Amalgamated Bank and Tompkins Financial 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.