Correlation Between Glen Burnie and Muncy Bank
Can any of the company-specific risk be diversified away by investing in both Glen Burnie and Muncy Bank 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 Muncy Bank 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 Muncy Bank Financial, you can compare the effects of market volatilities on Glen Burnie and Muncy Bank 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 Muncy Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Burnie and Muncy Bank.
Diversification Opportunities for Glen Burnie and Muncy Bank
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glen and Muncy is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Glen Burnie Bancorp and Muncy Bank Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muncy Bank Financial 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 Muncy Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muncy Bank Financial has no effect on the direction of Glen Burnie i.e., Glen Burnie and Muncy Bank go up and down completely randomly.
Pair Corralation between Glen Burnie and Muncy Bank
Given the investment horizon of 90 days Glen Burnie Bancorp is expected to generate 21.76 times more return on investment than Muncy Bank. However, Glen Burnie is 21.76 times more volatile than Muncy Bank Financial. It trades about 0.04 of its potential returns per unit of risk. Muncy Bank Financial is currently generating about 0.14 per unit of risk. If you would invest 730.00 in Glen Burnie Bancorp on August 29, 2024 and sell it today you would lose (139.00) from holding Glen Burnie Bancorp or give up 19.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 13.74% |
| Values | Daily Returns |
Glen Burnie Bancorp vs. Muncy Bank Financial
Performance |
| Timeline |
| Glen Burnie Bancorp |
| Muncy Bank Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Glen Burnie and Muncy Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Burnie and Muncy Bank
The main advantage of trading using opposite Glen Burnie and Muncy Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Burnie position performs unexpectedly, Muncy Bank 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 Muncy Bank will offset losses from the drop in Muncy Bank's long position.| Glen Burnie vs. Fifth Third Bancorp | Glen Burnie vs. Huntington Bancshares Incorporated | Glen Burnie vs. MT Bank |
| Muncy Bank vs. Main Street Financial | Muncy Bank vs. Susquehanna Community Financial | Muncy Bank vs. First Keystone Corp | Muncy Bank vs. Mifflinburg 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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