Correlation Between Bank of Utica and Mifflinburg Bancorp
Can any of the company-specific risk be diversified away by investing in both Bank of Utica and Mifflinburg Bancorp 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 Utica and Mifflinburg Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Utica and Mifflinburg Bancorp, you can compare the effects of market volatilities on Bank of Utica and Mifflinburg Bancorp 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 Utica with a short position of Mifflinburg Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Utica and Mifflinburg Bancorp.
Diversification Opportunities for Bank of Utica and Mifflinburg Bancorp
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bank and Mifflinburg is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Utica and Mifflinburg Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mifflinburg Bancorp and Bank of Utica 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 Bank of Utica are associated (or correlated) with Mifflinburg Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mifflinburg Bancorp has no effect on the direction of Bank of Utica i.e., Bank of Utica and Mifflinburg Bancorp go up and down completely randomly.
Pair Corralation between Bank of Utica and Mifflinburg Bancorp
Given the investment horizon of 90 days Bank of Utica is expected to generate 0.81 times more return on investment than Mifflinburg Bancorp. However, Bank of Utica is 1.24 times less risky than Mifflinburg Bancorp. It trades about 0.03 of its potential returns per unit of risk. Mifflinburg Bancorp is currently generating about 0.0 per unit of risk. If you would invest 44,431 in Bank of Utica on August 26, 2024 and sell it today you would earn a total of 4,369 from holding Bank of Utica or generate 9.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 65.65% |
| Values | Daily Returns |
Bank of Utica vs. Mifflinburg Bancorp
Performance |
| Timeline |
| Bank of Utica |
| Mifflinburg Bancorp |
Bank of Utica and Mifflinburg Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Utica and Mifflinburg Bancorp
The main advantage of trading using opposite Bank of Utica and Mifflinburg Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Utica position performs unexpectedly, Mifflinburg Bancorp 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 Mifflinburg Bancorp will offset losses from the drop in Mifflinburg Bancorp's long position.| Bank of Utica vs. Standard Bank Group | Bank of Utica vs. PSB Holdings | Bank of Utica vs. United Overseas Bank | Bank of Utica vs. Turkiye Garanti Bankasi |
| Mifflinburg Bancorp vs. Mauch Chunk Trust | Mifflinburg Bancorp vs. Juniata Valley Financial | Mifflinburg Bancorp vs. MBT Bancshares |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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