Correlation Between Crazy Woman and MNB Holdings
Can any of the company-specific risk be diversified away by investing in both Crazy Woman 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 Crazy Woman and MNB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crazy Woman Creek and MNB Holdings Corp, you can compare the effects of market volatilities on Crazy Woman 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 Crazy Woman with a short position of MNB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crazy Woman and MNB Holdings.
Diversification Opportunities for Crazy Woman and MNB Holdings
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Crazy and MNB is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Crazy Woman Creek 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 Crazy Woman 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 Crazy Woman Creek 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 Crazy Woman i.e., Crazy Woman and MNB Holdings go up and down completely randomly.
Pair Corralation between Crazy Woman and MNB Holdings
Given the investment horizon of 90 days Crazy Woman Creek is expected to generate 0.41 times more return on investment than MNB Holdings. However, Crazy Woman Creek is 2.43 times less risky than MNB Holdings. It trades about 0.23 of its potential returns per unit of risk. MNB Holdings Corp is currently generating about -0.02 per unit of risk. If you would invest 2,230 in Crazy Woman Creek on September 1, 2024 and sell it today you would earn a total of 120.00 from holding Crazy Woman Creek or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 8.33% |
| Values | Daily Returns |
Crazy Woman Creek vs. MNB Holdings Corp
Performance |
| Timeline |
| Crazy Woman Creek |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MNB Holdings Corp |
Crazy Woman and MNB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crazy Woman and MNB Holdings
The main advantage of trading using opposite Crazy Woman and MNB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crazy Woman 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.The idea behind Crazy Woman Creek and MNB Holdings Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| MNB Holdings vs. Bank Mandiri Persero | MNB Holdings vs. Piraeus Bank SA | MNB Holdings vs. Kasikornbank Public Co | MNB Holdings vs. Turkiye Garanti Bankasi |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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