Correlation Between HP and Mifflinburg Bancorp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both HP and Mifflinburg 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 HP and Mifflinburg Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HP Inc and Mifflinburg Bancorp, you can compare the effects of market volatilities on HP and Mifflinburg 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 HP with a short position of Mifflinburg Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HP and Mifflinburg Bancorp.

Diversification Opportunities for HP and Mifflinburg Bancorp

HPMifflinburgDiversified AwayHPMifflinburgDiversified Away100%
-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between HP and Mifflinburg is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding HP Inc and Mifflinburg Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mifflinburg Bancorp and HP 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 HP Inc are associated (or correlated) with Mifflinburg Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mifflinburg Bancorp has no effect on the direction of HP i.e., HP and Mifflinburg Bancorp go up and down completely randomly.

Pair Corralation between HP and Mifflinburg Bancorp

Considering the 90-day investment horizon HP Inc is expected to under-perform the Mifflinburg Bancorp. In addition to that, HP is 1.35 times more volatile than Mifflinburg Bancorp. It trades about -0.09 of its total potential returns per unit of risk. Mifflinburg Bancorp is currently generating about 0.06 per unit of volatility. If you would invest  2,275  in Mifflinburg Bancorp on November 24, 2024 and sell it today you would earn a total of  112.00  from holding Mifflinburg Bancorp or generate 4.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy96.61%
ValuesDaily Returns

HP Inc  vs.  Mifflinburg Bancorp

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-505
JavaScript chart by amCharts 3.21.15HPQ MIFF
       Timeline  
HP Inc 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days HP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest weak performance, the Stock's basic indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb313233343536373839
Mifflinburg Bancorp 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Mifflinburg Bancorp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Mifflinburg Bancorp is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2222.52323.52424.525

HP and Mifflinburg Bancorp Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.27-2.45-1.63-0.810.00.791.592.393.19 0.050.100.15
JavaScript chart by amCharts 3.21.15HPQ MIFF
       Returns  

Pair Trading with HP and Mifflinburg Bancorp

The main advantage of trading using opposite HP and Mifflinburg Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HP position performs unexpectedly, Mifflinburg 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 Mifflinburg Bancorp will offset losses from the drop in Mifflinburg Bancorp's long position.
The idea behind HP Inc and Mifflinburg Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..

Other Complementary Tools

CEOs Directory
Screen CEOs from public companies around the world
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings