Correlation Between Ffbw and Merchants Marine
Can any of the company-specific risk be diversified away by investing in both Ffbw and Merchants Marine 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 Ffbw and Merchants Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ffbw Inc and Merchants Marine Bancorp, you can compare the effects of market volatilities on Ffbw and Merchants Marine 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 Ffbw with a short position of Merchants Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ffbw and Merchants Marine.
Diversification Opportunities for Ffbw and Merchants Marine
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ffbw and Merchants is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ffbw Inc and Merchants Marine Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merchants Marine Bancorp and Ffbw 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 Ffbw Inc are associated (or correlated) with Merchants Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merchants Marine Bancorp has no effect on the direction of Ffbw i.e., Ffbw and Merchants Marine go up and down completely randomly.
Pair Corralation between Ffbw and Merchants Marine
If you would invest 3,814 in Merchants Marine Bancorp on November 29, 2024 and sell it today you would earn a total of 396.00 from holding Merchants Marine Bancorp or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ffbw Inc vs. Merchants Marine Bancorp
Performance |
| Timeline |
| Ffbw Inc |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Merchants Marine Bancorp |
Ffbw and Merchants Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ffbw and Merchants Marine
The main advantage of trading using opposite Ffbw and Merchants Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ffbw position performs unexpectedly, Merchants Marine 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 Merchants Marine will offset losses from the drop in Merchants Marine's long position.| Ffbw vs. Nmb Financial Corp | Ffbw vs. Hang Seng Bank | Ffbw vs. Southern BancShares NC | Ffbw vs. CCSB Financial Corp |
| Merchants Marine vs. Mission Valley Bancorp | Merchants Marine vs. Harbor Bankshares | Merchants Marine vs. Oconee Financial | Merchants Marine 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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