Correlation Between Peak Bancorp and MVB Financial
Can any of the company-specific risk be diversified away by investing in both Peak Bancorp and MVB Financial 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 Peak Bancorp and MVB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peak Bancorp and MVB Financial Corp, you can compare the effects of market volatilities on Peak Bancorp and MVB Financial 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 Peak Bancorp with a short position of MVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peak Bancorp and MVB Financial.
Diversification Opportunities for Peak Bancorp and MVB Financial
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Peak and MVB is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Peak Bancorp and MVB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MVB Financial Corp and Peak Bancorp 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 Peak Bancorp are associated (or correlated) with MVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MVB Financial Corp has no effect on the direction of Peak Bancorp i.e., Peak Bancorp and MVB Financial go up and down completely randomly.
Pair Corralation between Peak Bancorp and MVB Financial
If you would invest 1,874 in MVB Financial Corp on September 4, 2024 and sell it today you would earn a total of 285.00 from holding MVB Financial Corp or generate 15.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Peak Bancorp vs. MVB Financial Corp
Performance |
| Timeline |
| Peak Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MVB Financial Corp |
Peak Bancorp and MVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peak Bancorp and MVB Financial
The main advantage of trading using opposite Peak Bancorp and MVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peak Bancorp position performs unexpectedly, MVB Financial 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 MVB Financial will offset losses from the drop in MVB Financial's long position.| Peak Bancorp vs. MVB Financial Corp | Peak Bancorp vs. Finward Bancorp | Peak Bancorp vs. First Community | Peak Bancorp vs. LINKBANCORP |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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