Correlation Between BEO Bancorp and Nmb Financial
Can any of the company-specific risk be diversified away by investing in both BEO Bancorp and Nmb Financial 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 BEO Bancorp and Nmb Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEO Bancorp and Nmb Financial Corp, you can compare the effects of market volatilities on BEO Bancorp and Nmb Financial 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 BEO Bancorp with a short position of Nmb Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEO Bancorp and Nmb Financial.
Diversification Opportunities for BEO Bancorp and Nmb Financial
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BEO and Nmb is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding BEO Bancorp and Nmb Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nmb Financial Corp and BEO 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 BEO Bancorp are associated (or correlated) with Nmb Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nmb Financial Corp has no effect on the direction of BEO Bancorp i.e., BEO Bancorp and Nmb Financial go up and down completely randomly.
Pair Corralation between BEO Bancorp and Nmb Financial
Given the investment horizon of 90 days BEO Bancorp is expected to under-perform the Nmb Financial. But the pink sheet apears to be less risky and, when comparing its historical volatility, BEO Bancorp is 1.9 times less risky than Nmb Financial. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Nmb Financial Corp is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 1,026 in Nmb Financial Corp on September 2, 2024 and sell it today you would earn a total of 374.00 from holding Nmb Financial Corp or generate 36.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
BEO Bancorp vs. Nmb Financial Corp
Performance |
| Timeline |
| BEO Bancorp |
| Nmb Financial Corp |
BEO Bancorp and Nmb Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEO Bancorp and Nmb Financial
The main advantage of trading using opposite BEO Bancorp and Nmb Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEO Bancorp position performs unexpectedly, Nmb Financial 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 Nmb Financial will offset losses from the drop in Nmb Financial's long position.| BEO Bancorp vs. Piraeus Bank SA | BEO Bancorp vs. Turkiye Garanti Bankasi | BEO Bancorp vs. Uwharrie Capital Corp |
| Nmb Financial vs. Piraeus Bank SA | Nmb Financial vs. Turkiye Garanti Bankasi | Nmb Financial vs. Uwharrie Capital Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |