Correlation Between Citizens Financial and MNB Holdings
Can any of the company-specific risk be diversified away by investing in both Citizens Financial and MNB Holdings 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 Citizens Financial and MNB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citizens Financial Corp and MNB Holdings Corp, you can compare the effects of market volatilities on Citizens Financial and MNB Holdings 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 Citizens Financial with a short position of MNB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citizens Financial and MNB Holdings.
Diversification Opportunities for Citizens Financial and MNB Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Citizens and MNB is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Citizens Financial Corp and MNB Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNB Holdings Corp and Citizens Financial 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 Citizens Financial Corp are associated (or correlated) with MNB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNB Holdings Corp has no effect on the direction of Citizens Financial i.e., Citizens Financial and MNB Holdings go up and down completely randomly.
Pair Corralation between Citizens Financial and MNB Holdings
Given the investment horizon of 90 days Citizens Financial is expected to generate 1.46 times less return on investment than MNB Holdings. But when comparing it to its historical volatility, Citizens Financial Corp is 1.84 times less risky than MNB Holdings. It trades about 0.17 of its potential returns per unit of risk. MNB Holdings Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,500 in MNB Holdings Corp on November 30, 2024 and sell it today you would earn a total of 398.00 from holding MNB Holdings Corp or generate 15.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 75.61% |
| Values | Daily Returns |
Citizens Financial Corp vs. MNB Holdings Corp
Performance |
| Timeline |
| Citizens Financial Corp |
| MNB Holdings Corp |
Citizens Financial and MNB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citizens Financial and MNB Holdings
The main advantage of trading using opposite Citizens Financial and MNB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citizens Financial position performs unexpectedly, MNB Holdings 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 MNB Holdings will offset losses from the drop in MNB Holdings' long position.| Citizens Financial vs. Century Next Financial | Citizens Financial vs. Triad Business Bank | Citizens Financial vs. First Ottawa Bancshares | Citizens Financial vs. First Community Financial |
| MNB Holdings vs. Harbor Bankshares | MNB Holdings vs. Oconee Financial | MNB Holdings vs. Mission Valley Bancorp | MNB Holdings vs. MF Bancorp |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |