Correlation Between Magyar Bancorp and Civista Bancshares
Can any of the company-specific risk be diversified away by investing in both Magyar Bancorp and Civista Bancshares 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 Magyar Bancorp and Civista Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magyar Bancorp and Civista Bancshares, you can compare the effects of market volatilities on Magyar Bancorp and Civista Bancshares 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 Magyar Bancorp with a short position of Civista Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magyar Bancorp and Civista Bancshares.
Diversification Opportunities for Magyar Bancorp and Civista Bancshares
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magyar and Civista is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Magyar Bancorp and Civista Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Civista Bancshares and Magyar 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 Magyar Bancorp are associated (or correlated) with Civista Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Civista Bancshares has no effect on the direction of Magyar Bancorp i.e., Magyar Bancorp and Civista Bancshares go up and down completely randomly.
Pair Corralation between Magyar Bancorp and Civista Bancshares
Given the investment horizon of 90 days Magyar Bancorp is expected to generate 0.91 times more return on investment than Civista Bancshares. However, Magyar Bancorp is 1.1 times less risky than Civista Bancshares. It trades about 0.04 of its potential returns per unit of risk. Civista Bancshares is currently generating about -0.07 per unit of risk. If you would invest 1,454 in Magyar Bancorp on November 28, 2024 and sell it today you would earn a total of 18.00 from holding Magyar Bancorp or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magyar Bancorp vs. Civista Bancshares
Performance |
| Timeline |
| Magyar Bancorp |
| Civista Bancshares |
Magyar Bancorp and Civista Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magyar Bancorp and Civista Bancshares
The main advantage of trading using opposite Magyar Bancorp and Civista Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magyar Bancorp position performs unexpectedly, Civista Bancshares 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 Civista Bancshares will offset losses from the drop in Civista Bancshares' long position.| Magyar Bancorp vs. Home Federal Bancorp | Magyar Bancorp vs. Community West Bancshares | Magyar Bancorp vs. First Financial Northwest | Magyar Bancorp vs. First Northwest Bancorp |
| Civista Bancshares vs. Home Federal Bancorp | Civista Bancshares vs. First Financial Northwest | Civista Bancshares vs. First Northwest Bancorp | Civista Bancshares vs. First Capital |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |