Correlation Between Glen Burnie and Magyar Bancorp
Can any of the company-specific risk be diversified away by investing in both Glen Burnie and Magyar Bancorp 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 Glen Burnie and Magyar Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glen Burnie Bancorp and Magyar Bancorp, you can compare the effects of market volatilities on Glen Burnie and Magyar Bancorp 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 Glen Burnie with a short position of Magyar Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Burnie and Magyar Bancorp.
Diversification Opportunities for Glen Burnie and Magyar Bancorp
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Glen and Magyar is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Glen Burnie Bancorp and Magyar Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magyar Bancorp and Glen Burnie 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 Glen Burnie Bancorp are associated (or correlated) with Magyar Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magyar Bancorp has no effect on the direction of Glen Burnie i.e., Glen Burnie and Magyar Bancorp go up and down completely randomly.
Pair Corralation between Glen Burnie and Magyar Bancorp
Given the investment horizon of 90 days Glen Burnie Bancorp is expected to generate 29.51 times more return on investment than Magyar Bancorp. However, Glen Burnie is 29.51 times more volatile than Magyar Bancorp. It trades about 0.04 of its potential returns per unit of risk. Magyar Bancorp is currently generating about 0.02 per unit of risk. If you would invest 811.00 in Glen Burnie Bancorp on August 26, 2024 and sell it today you would lose (251.00) from holding Glen Burnie Bancorp or give up 30.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Glen Burnie Bancorp vs. Magyar Bancorp
Performance |
| Timeline |
| Glen Burnie Bancorp |
| Magyar Bancorp |
Glen Burnie and Magyar Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Burnie and Magyar Bancorp
The main advantage of trading using opposite Glen Burnie and Magyar Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Burnie position performs unexpectedly, Magyar Bancorp 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 Magyar Bancorp will offset losses from the drop in Magyar Bancorp's long position.| Glen Burnie vs. First Bankers Trustshares | Glen Burnie vs. Greenville Federal Financial | Glen Burnie vs. First Ottawa Bancshares | Glen Burnie vs. Coastal Carolina Bancshares |
| Magyar Bancorp vs. Home Federal Bancorp | Magyar Bancorp vs. Community West Bancshares | Magyar Bancorp vs. First Financial Northwest | Magyar Bancorp vs. First Northwest 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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