Correlation Between Monarch Mining and Glen Burnie
Can any of the company-specific risk be diversified away by investing in both Monarch Mining and Glen Burnie 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 Monarch Mining and Glen Burnie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monarch Mining and Glen Burnie Bancorp, you can compare the effects of market volatilities on Monarch Mining and Glen Burnie 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 Monarch Mining with a short position of Glen Burnie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monarch Mining and Glen Burnie.
Diversification Opportunities for Monarch Mining and Glen Burnie
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Monarch and Glen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Monarch Mining and Glen Burnie Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glen Burnie Bancorp and Monarch Mining 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 Monarch Mining are associated (or correlated) with Glen Burnie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glen Burnie Bancorp has no effect on the direction of Monarch Mining i.e., Monarch Mining and Glen Burnie go up and down completely randomly.
Pair Corralation between Monarch Mining and Glen Burnie
Assuming the 90 days horizon Monarch Mining is expected to under-perform the Glen Burnie. But the otc stock apears to be less risky and, when comparing its historical volatility, Monarch Mining is 4.86 times less risky than Glen Burnie. The otc stock trades about -0.02 of its potential returns per unit of risk. The Glen Burnie Bancorp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Glen Burnie Bancorp on September 1, 2024 and sell it today you would lose (88.00) from holding Glen Burnie Bancorp or give up 12.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.12% |
| Values | Daily Returns |
Monarch Mining vs. Glen Burnie Bancorp
Performance |
| Timeline |
| Monarch Mining |
| Glen Burnie Bancorp |
Monarch Mining and Glen Burnie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monarch Mining and Glen Burnie
The main advantage of trading using opposite Monarch Mining and Glen Burnie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monarch Mining position performs unexpectedly, Glen Burnie 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 Glen Burnie will offset losses from the drop in Glen Burnie's long position.| Monarch Mining vs. Lundin Gold | Monarch Mining vs. Gold Reserve | Monarch Mining vs. Liberty Gold Corp | Monarch Mining vs. Dynacor Gold Mines |
| Glen Burnie vs. First Bankers Trustshares | Glen Burnie vs. Greenville Federal Financial | Glen Burnie vs. First Ottawa Bancshares | Glen Burnie vs. Coastal Carolina Bancshares |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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