Correlation Between MBT Bancshares and Mifflinburg Bancorp
Can any of the company-specific risk be diversified away by investing in both MBT Bancshares 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 MBT Bancshares and Mifflinburg Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MBT Bancshares and Mifflinburg Bancorp, you can compare the effects of market volatilities on MBT Bancshares 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 MBT Bancshares with a short position of Mifflinburg Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBT Bancshares and Mifflinburg Bancorp.
Diversification Opportunities for MBT Bancshares and Mifflinburg Bancorp
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MBT and Mifflinburg is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding MBT Bancshares and Mifflinburg Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mifflinburg Bancorp and MBT Bancshares 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 MBT Bancshares 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 MBT Bancshares i.e., MBT Bancshares and Mifflinburg Bancorp go up and down completely randomly.
Pair Corralation between MBT Bancshares and Mifflinburg Bancorp
Given the investment horizon of 90 days MBT Bancshares is expected to generate 0.34 times more return on investment than Mifflinburg Bancorp. However, MBT Bancshares is 2.96 times less risky than Mifflinburg Bancorp. It trades about 0.19 of its potential returns per unit of risk. Mifflinburg Bancorp is currently generating about 0.01 per unit of risk. If you would invest 1,900 in MBT Bancshares on August 29, 2024 and sell it today you would earn a total of 50.00 from holding MBT Bancshares or generate 2.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MBT Bancshares vs. Mifflinburg Bancorp
Performance |
| Timeline |
| MBT Bancshares |
| Mifflinburg Bancorp |
MBT Bancshares and Mifflinburg Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBT Bancshares and Mifflinburg Bancorp
The main advantage of trading using opposite MBT Bancshares and Mifflinburg Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBT Bancshares 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.| MBT Bancshares vs. Invesco High Income | MBT Bancshares vs. Blackrock Muniholdings Ny | MBT Bancshares vs. MFS Investment Grade | MBT Bancshares vs. Federated Premier Municipal |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |