Correlation Between First Horizon and MNB Holdings
Can any of the company-specific risk be diversified away by investing in both First Horizon 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 First Horizon and MNB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Horizon National and MNB Holdings Corp, you can compare the effects of market volatilities on First Horizon 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 First Horizon with a short position of MNB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Horizon and MNB Holdings.
Diversification Opportunities for First Horizon and MNB Holdings
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and MNB is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding First Horizon National 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 First Horizon 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 First Horizon National 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 First Horizon i.e., First Horizon and MNB Holdings go up and down completely randomly.
Pair Corralation between First Horizon and MNB Holdings
Considering the 90-day investment horizon First Horizon National is expected to generate 0.94 times more return on investment than MNB Holdings. However, First Horizon National is 1.07 times less risky than MNB Holdings. It trades about 0.1 of its potential returns per unit of risk. MNB Holdings Corp is currently generating about -0.01 per unit of risk. If you would invest 1,308 in First Horizon National on September 3, 2024 and sell it today you would earn a total of 765.00 from holding First Horizon National or generate 58.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Horizon National vs. MNB Holdings Corp
Performance |
| Timeline |
| First Horizon National |
| MNB Holdings Corp |
First Horizon and MNB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Horizon and MNB Holdings
The main advantage of trading using opposite First Horizon and MNB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Horizon 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.| First Horizon vs. JPMorgan Chase Co | First Horizon vs. Citigroup | First Horizon vs. Wells Fargo | First Horizon vs. Toronto Dominion Bank |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |