Correlation Between Arrow Financial and ScanTech
Can any of the company-specific risk be diversified away by investing in both Arrow Financial and ScanTech 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 Arrow Financial and ScanTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Financial and ScanTech AI Systems, you can compare the effects of market volatilities on Arrow Financial and ScanTech 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 Arrow Financial with a short position of ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Financial and ScanTech.
Diversification Opportunities for Arrow Financial and ScanTech
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and ScanTech is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Financial and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems and Arrow 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 Arrow Financial are associated (or correlated) with ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of Arrow Financial i.e., Arrow Financial and ScanTech go up and down completely randomly.
Pair Corralation between Arrow Financial and ScanTech
Given the investment horizon of 90 days Arrow Financial is expected to generate 0.12 times more return on investment than ScanTech. However, Arrow Financial is 8.32 times less risky than ScanTech. It trades about 0.03 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.06 per unit of risk. If you would invest 2,597 in Arrow Financial on May 8, 2025 and sell it today you would earn a total of 60.00 from holding Arrow Financial or generate 2.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Arrow Financial vs. ScanTech AI Systems
Performance |
Timeline |
Arrow Financial |
ScanTech AI Systems |
Arrow Financial and ScanTech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arrow Financial and ScanTech
The main advantage of trading using opposite Arrow Financial and ScanTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Financial position performs unexpectedly, ScanTech 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 ScanTech will offset losses from the drop in ScanTech's long position.Arrow Financial vs. Bank of Marin | Arrow Financial vs. Ames National | Arrow Financial vs. NBT Bancorp | Arrow Financial vs. Community Trust Bancorp |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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