Correlation Between Queens Road and Bank of New York

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Can any of the company-specific risk be diversified away by investing in both Queens Road and Bank of New York 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 Queens Road and Bank of New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Queens Road Capital and Canadian Banc Corp, you can compare the effects of market volatilities on Queens Road and Bank of New York 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 Queens Road with a short position of Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Queens Road and Bank of New York.

Diversification Opportunities for Queens Road and Bank of New York

0.93
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Queens and Bank is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Queens Road Capital and Canadian Banc Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canadian Banc Corp and Queens Road 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 Queens Road Capital are associated (or correlated) with Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canadian Banc Corp has no effect on the direction of Queens Road i.e., Queens Road and Bank of New York go up and down completely randomly.

Pair Corralation between Queens Road and Bank of New York

Assuming the 90 days trading horizon Queens Road Capital is expected to generate 2.12 times more return on investment than Bank of New York. However, Queens Road is 2.12 times more volatile than Canadian Banc Corp. It trades about 0.2 of its potential returns per unit of risk. Canadian Banc Corp is currently generating about 0.32 per unit of risk. If you would invest  698.00  in Queens Road Capital on August 27, 2025 and sell it today you would earn a total of  202.00  from holding Queens Road Capital or generate 28.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Queens Road Capital  vs.  Canadian Banc Corp

 Performance 
       Timeline  
Queens Road Capital 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Queens Road Capital are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Queens Road displayed solid returns over the last few months and may actually be approaching a breakup point.
Canadian Banc Corp 

Risk-Adjusted Performance

Strong

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Canadian Banc Corp are ranked lower than 25 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Bank of New York displayed solid returns over the last few months and may actually be approaching a breakup point.

Queens Road and Bank of New York Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Queens Road and Bank of New York

The main advantage of trading using opposite Queens Road and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Queens Road position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.
The idea behind Queens Road Capital and Canadian Banc Corp 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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