Correlation Between Bank of New York and VersaBank
Can any of the company-specific risk be diversified away by investing in both Bank of New York and VersaBank 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 Bank of New York and VersaBank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canadian Banc Corp and VersaBank, you can compare the effects of market volatilities on Bank of New York and VersaBank 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 Bank of New York with a short position of VersaBank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of New York and VersaBank.
Diversification Opportunities for Bank of New York and VersaBank
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and VersaBank is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Canadian Banc Corp and VersaBank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VersaBank and Bank of New York 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 Canadian Banc Corp are associated (or correlated) with VersaBank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VersaBank has no effect on the direction of Bank of New York i.e., Bank of New York and VersaBank go up and down completely randomly.
Pair Corralation between Bank of New York and VersaBank
Assuming the 90 days horizon Canadian Banc Corp is expected to generate 0.65 times more return on investment than VersaBank. However, Canadian Banc Corp is 1.53 times less risky than VersaBank. It trades about 0.29 of its potential returns per unit of risk. VersaBank is currently generating about 0.04 per unit of risk. If you would invest 1,191 in Canadian Banc Corp on September 10, 2025 and sell it today you would earn a total of 244.00 from holding Canadian Banc Corp or generate 20.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canadian Banc Corp vs. VersaBank
Performance |
| Timeline |
| Canadian Banc Corp |
| VersaBank |
Bank of New York and VersaBank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of New York and VersaBank
The main advantage of trading using opposite Bank of New York and VersaBank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of New York position performs unexpectedly, VersaBank 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 VersaBank will offset losses from the drop in VersaBank's long position.| Bank of New York vs. Life Banc Split | Bank of New York vs. Financial 15 Split | Bank of New York vs. North American Financial | Bank of New York vs. Fiera Capital |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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