Correlation Between Pathfinder Bancorp and LINKBANCORP
Can any of the company-specific risk be diversified away by investing in both Pathfinder Bancorp and LINKBANCORP 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 Pathfinder Bancorp and LINKBANCORP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pathfinder Bancorp and LINKBANCORP, you can compare the effects of market volatilities on Pathfinder Bancorp and LINKBANCORP 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 Pathfinder Bancorp with a short position of LINKBANCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pathfinder Bancorp and LINKBANCORP.
Diversification Opportunities for Pathfinder Bancorp and LINKBANCORP
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pathfinder and LINKBANCORP is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Pathfinder Bancorp and LINKBANCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINKBANCORP and Pathfinder Bancorp 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 Pathfinder Bancorp are associated (or correlated) with LINKBANCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINKBANCORP has no effect on the direction of Pathfinder Bancorp i.e., Pathfinder Bancorp and LINKBANCORP go up and down completely randomly.
Pair Corralation between Pathfinder Bancorp and LINKBANCORP
Given the investment horizon of 90 days Pathfinder Bancorp is expected to under-perform the LINKBANCORP. But the stock apears to be less risky and, when comparing its historical volatility, Pathfinder Bancorp is 1.0 times less risky than LINKBANCORP. The stock trades about 0.0 of its potential returns per unit of risk. The LINKBANCORP is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 686.00 in LINKBANCORP on May 21, 2025 and sell it today you would earn a total of 30.50 from holding LINKBANCORP or generate 4.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.16% |
Values | Daily Returns |
Pathfinder Bancorp vs. LINKBANCORP
Performance |
Timeline |
Pathfinder Bancorp |
LINKBANCORP |
Pathfinder Bancorp and LINKBANCORP Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Pathfinder Bancorp and LINKBANCORP
The main advantage of trading using opposite Pathfinder Bancorp and LINKBANCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pathfinder Bancorp position performs unexpectedly, LINKBANCORP 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 LINKBANCORP will offset losses from the drop in LINKBANCORP's long position.Pathfinder Bancorp vs. Home Federal Bancorp | Pathfinder Bancorp vs. Magyar Bancorp | Pathfinder Bancorp vs. Lake Shore Bancorp | Pathfinder Bancorp vs. Old Point Financial |
LINKBANCORP vs. Affinity Bancshares | LINKBANCORP vs. Home Federal Bancorp | LINKBANCORP vs. John Marshall Bancorp | LINKBANCORP vs. Hanover Bancorp |
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 Stocks Directory module to find actively traded stocks across global markets.
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