Correlation Between MetroCity Bankshares and Logansport Financial
Can any of the company-specific risk be diversified away by investing in both MetroCity Bankshares and Logansport 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 MetroCity Bankshares and Logansport Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MetroCity Bankshares and Logansport Financial Corp, you can compare the effects of market volatilities on MetroCity Bankshares and Logansport 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 MetroCity Bankshares with a short position of Logansport Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetroCity Bankshares and Logansport Financial.
Diversification Opportunities for MetroCity Bankshares and Logansport Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MetroCity and Logansport is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MetroCity Bankshares and Logansport Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logansport Financial Corp and MetroCity Bankshares 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 MetroCity Bankshares are associated (or correlated) with Logansport Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logansport Financial Corp has no effect on the direction of MetroCity Bankshares i.e., MetroCity Bankshares and Logansport Financial go up and down completely randomly.
Pair Corralation between MetroCity Bankshares and Logansport Financial
Given the investment horizon of 90 days MetroCity Bankshares is expected to generate 2.1 times less return on investment than Logansport Financial. In addition to that, MetroCity Bankshares is 1.75 times more volatile than Logansport Financial Corp. It trades about 0.06 of its total potential returns per unit of risk. Logansport Financial Corp is currently generating about 0.2 per unit of volatility. If you would invest 3,875 in Logansport Financial Corp on October 9, 2024 and sell it today you would earn a total of 175.00 from holding Logansport Financial Corp or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 3.43% |
| Values | Daily Returns |
MetroCity Bankshares vs. Logansport Financial Corp
Performance |
| Timeline |
| MetroCity Bankshares |
| Logansport Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
MetroCity Bankshares and Logansport Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MetroCity Bankshares and Logansport Financial
The main advantage of trading using opposite MetroCity Bankshares and Logansport Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetroCity Bankshares position performs unexpectedly, Logansport 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 Logansport Financial will offset losses from the drop in Logansport Financial's long position.| MetroCity Bankshares vs. Home Bancorp | MetroCity Bankshares vs. Great Southern Bancorp | MetroCity Bankshares vs. Finward Bancorp | MetroCity Bankshares vs. CrossFirst Bankshares |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| CEOs Directory Screen CEOs from public companies around the world |