Correlation Between ConnectOne Bancorp and MYMD Old
Can any of the company-specific risk be diversified away by investing in both ConnectOne Bancorp and MYMD Old 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 ConnectOne Bancorp and MYMD Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConnectOne Bancorp and MYMD Old, you can compare the effects of market volatilities on ConnectOne Bancorp and MYMD Old 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 ConnectOne Bancorp with a short position of MYMD Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConnectOne Bancorp and MYMD Old.
Diversification Opportunities for ConnectOne Bancorp and MYMD Old
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ConnectOne and MYMD is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding ConnectOne Bancorp and MYMD Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYMD Old and ConnectOne 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 ConnectOne Bancorp are associated (or correlated) with MYMD Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYMD Old has no effect on the direction of ConnectOne Bancorp i.e., ConnectOne Bancorp and MYMD Old go up and down completely randomly.
Pair Corralation between ConnectOne Bancorp and MYMD Old
If you would invest 2,221 in ConnectOne Bancorp on October 15, 2024 and sell it today you would earn a total of 29.00 from holding ConnectOne Bancorp or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.56% |
| Values | Daily Returns |
ConnectOne Bancorp vs. MYMD Old
Performance |
| Timeline |
| ConnectOne Bancorp |
| MYMD Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ConnectOne Bancorp and MYMD Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConnectOne Bancorp and MYMD Old
The main advantage of trading using opposite ConnectOne Bancorp and MYMD Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConnectOne Bancorp position performs unexpectedly, MYMD Old 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 MYMD Old will offset losses from the drop in MYMD Old's long position.| ConnectOne Bancorp vs. Dime Community Bancshares | ConnectOne Bancorp vs. Washington Federal | ConnectOne Bancorp vs. CNB Financial | ConnectOne Bancorp vs. First Guaranty Bancshares |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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