Correlation Between Amalgamated Bank and Univest Pennsylvania

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

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

Diversification Opportunities for Amalgamated Bank and Univest Pennsylvania

0.74

Correlation Coefficient

Amalgamated Bank  Univest Pennsylvania

Poor diversification

The 3 months correlation between Amalgamated and Univest is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Amalgamated Bank and Univest Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univest Pennsylvania 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 Univest Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univest Pennsylvania has no effect on the direction of Amalgamated Bank i.e., Amalgamated Bank and Univest Pennsylvania go up and down completely randomly.

Pair Corralation between Amalgamated Bank and Univest Pennsylvania

Given the investment horizon of 90 days Amalgamated Bank is expected to generate 10.62 times less return on investment than Univest Pennsylvania. In addition to that, Amalgamated Bank is 1.09 times more volatile than Univest Pennsylvania. It trades about 0.0 of its total potential returns per unit of risk. Univest Pennsylvania is currently generating about 0.04 per unit of volatility. If you would invest  2,848  in Univest Pennsylvania on August 11, 2025 and sell it today you would earn a total of  107.00  from holding Univest Pennsylvania or generate 3.76% 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.  Univest Pennsylvania

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.

Univest Pennsylvania

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Univest Pennsylvania are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Univest Pennsylvania 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 Univest Pennsylvania

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

The idea behind Amalgamated Bank and Univest Pennsylvania 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.