NBTB vs TOWN: Correlation
Measured on weekly returns over the past three years, NBT Bancorp Inc. (NBTB) and Towne Bank (TOWN) carry a correlation of 0.87, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NBTB and TOWN?
Over the past 3 years, NBTB and TOWN moved with a correlation of 0.87, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.85 over 1 year against 0.87 over 3. Over 5 years the correlation is 0.83, and the annualized covariance of weekly returns is 594.8 %².
By 3-year correlation, TOWN places #7 of the 17 assets tracked against NBTB. Over the last 12 months NBTB came out ahead by 11.4 percentage points (+18.1% against +6.7%).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
NBTB vs TOWN: side by side
| NBTB (NBT Bancorp Inc.) | TOWN (Towne Bank) | |
|---|---|---|
| 1-year return | +18.1% | +6.7% |
| 5-year return | +68.0% | +47.6% |
| Volatility (ann.) | 27.2% | 25.0% |
| Beta vs S&P 500 | 0.75 | 0.77 |
| Max drawdown (3Y) | -25.7% | -18.4% |
| Market cap | $2.7B | $3.5B |
| P/E (trailing) | 12.5 | 18.0 |
| Dividend yield | 2.87% | 2.90% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NBTB | TOWN |
|---|---|---|
| 2022 | +16.0% | +0.7% |
| 2023 | -0.1% | +0.3% |
| 2024 | +17.7% | +18.3% |
| 2025 | -10.2% | +1.0% |
| 2026 | +26.0% | +16.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NBTB and TOWN good diversifiers for each other?
No. With a correlation of 0.87, NBTB and TOWN move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between NBTB and TOWN?
As of 2026-08-27, the correlation of weekly returns between NBTB and TOWN is 0.87 over 3 years, 0.85 over 1 year and 0.83 over 5 years.
Is TOWN a good diversifier for NBTB?
No. With a correlation of 0.87, NBTB and TOWN move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.87 mean?
A reading of 0.87 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: NBTB correlations · TOWN correlations
