Correlation Between Federated Premier and MBT Bancshares
Can any of the company-specific risk be diversified away by investing in both Federated Premier and MBT Bancshares 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 Federated Premier and MBT Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Premier Municipal and MBT Bancshares, you can compare the effects of market volatilities on Federated Premier and MBT Bancshares 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 Federated Premier with a short position of MBT Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Premier and MBT Bancshares.
Diversification Opportunities for Federated Premier and MBT Bancshares
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and MBT is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Federated Premier Municipal and MBT Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBT Bancshares and Federated Premier 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 Federated Premier Municipal are associated (or correlated) with MBT Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBT Bancshares has no effect on the direction of Federated Premier i.e., Federated Premier and MBT Bancshares go up and down completely randomly.
Pair Corralation between Federated Premier and MBT Bancshares
Considering the 90-day investment horizon Federated Premier Municipal is expected to under-perform the MBT Bancshares. In addition to that, Federated Premier is 1.32 times more volatile than MBT Bancshares. It trades about -0.05 of its total potential returns per unit of risk. MBT Bancshares is currently generating about 0.11 per unit of volatility. If you would invest 1,875 in MBT Bancshares on August 29, 2024 and sell it today you would earn a total of 75.00 from holding MBT Bancshares or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Federated Premier Municipal vs. MBT Bancshares
Performance |
| Timeline |
| Federated Premier |
| MBT Bancshares |
Federated Premier and MBT Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Premier and MBT Bancshares
The main advantage of trading using opposite Federated Premier and MBT Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Premier position performs unexpectedly, MBT Bancshares 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 MBT Bancshares will offset losses from the drop in MBT Bancshares' long position.| Federated Premier vs. Gabelli Global Small | Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance National | Federated Premier vs. GAMCO Natural Resources |
| MBT Bancshares vs. Invesco High Income | MBT Bancshares vs. Blackrock Muniholdings Ny | MBT Bancshares vs. Nuveen California Select | MBT Bancshares vs. MFS Investment Grade |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |