Correlation Between MBT Bancshares and Muncy Bank
Can any of the company-specific risk be diversified away by investing in both MBT Bancshares 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 MBT Bancshares and Muncy Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MBT Bancshares and Muncy Bank Financial, you can compare the effects of market volatilities on MBT Bancshares 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 MBT Bancshares with a short position of Muncy Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of MBT Bancshares and Muncy Bank.
Diversification Opportunities for MBT Bancshares and Muncy Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MBT and Muncy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MBT Bancshares 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 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 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 MBT Bancshares i.e., MBT Bancshares and Muncy Bank go up and down completely randomly.
Pair Corralation between MBT Bancshares and Muncy Bank
If you would invest (100.00) in Muncy Bank Financial on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Muncy Bank Financial or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
MBT Bancshares vs. Muncy Bank Financial
Performance |
| Timeline |
| MBT Bancshares |
Risk-Adjusted Performance
Very Strong
Weak | Strong |
| Muncy Bank Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
MBT Bancshares and Muncy Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MBT Bancshares and Muncy Bank
The main advantage of trading using opposite MBT Bancshares and Muncy Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MBT Bancshares 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.| MBT Bancshares vs. Huntington Bancshares Incorporated | MBT Bancshares vs. KeyCorp | MBT Bancshares vs. Bank of Idaho | MBT Bancshares vs. Citizens Financial Corp |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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