Correlation Between Pathfinder Bancorp and Spark I

Can any of the company-specific risk be diversified away by investing in both Pathfinder Bancorp and Spark I 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 Spark I into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pathfinder Bancorp and Spark I Acquisition, you can compare the effects of market volatilities on Pathfinder Bancorp and Spark I 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 Spark I. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pathfinder Bancorp and Spark I.

Diversification Opportunities for Pathfinder Bancorp and Spark I

0.62

Correlation Coefficient

Pathfinder Bancorp  Spark I

Poor diversification

The 3 months correlation between Pathfinder and Spark is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pathfinder Bancorp and Spark I Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spark I Acquisition 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 Spark I. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spark I Acquisition has no effect on the direction of Pathfinder Bancorp i.e., Pathfinder Bancorp and Spark I go up and down completely randomly.

Pair Corralation between Pathfinder Bancorp and Spark I

Given the investment horizon of 90 days Pathfinder Bancorp is expected to under-perform the Spark I. In addition to that, Pathfinder Bancorp is 1.42 times more volatile than Spark I Acquisition. It trades about -0.07 of its total potential returns per unit of risk. Spark I Acquisition is currently generating about 0.03 per unit of volatility. If you would invest  1,095  in Spark I Acquisition on September 2, 2025 and sell it today you would earn a total of  20.00  from holding Spark I Acquisition or generate 1.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	85.94%
Values	Daily Returns

Pathfinder Bancorp  vs.  Spark I Acquisition

Pathfinder Bancorp

Risk-Adjusted Performance

Weakest

Over the last 90 days Pathfinder Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Pathfinder Bancorp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Spark I Acquisition

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Spark I Acquisition are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Spark I is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Pathfinder Bancorp and Spark I

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

The idea behind Pathfinder Bancorp and Spark I Acquisition 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.