Correlation Between Magyar Bancorp and Greenville Federal
Can any of the company-specific risk be diversified away by investing in both Magyar Bancorp and Greenville Federal 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 Greenville Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magyar Bancorp and Greenville Federal Financial, you can compare the effects of market volatilities on Magyar Bancorp and Greenville Federal 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 Greenville Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magyar Bancorp and Greenville Federal.
Diversification Opportunities for Magyar Bancorp and Greenville Federal
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Magyar and Greenville is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Magyar Bancorp and Greenville Federal Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenville Federal 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 Greenville Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenville Federal has no effect on the direction of Magyar Bancorp i.e., Magyar Bancorp and Greenville Federal go up and down completely randomly.
Pair Corralation between Magyar Bancorp and Greenville Federal
Given the investment horizon of 90 days Magyar Bancorp is expected to generate 0.47 times more return on investment than Greenville Federal. However, Magyar Bancorp is 2.12 times less risky than Greenville Federal. It trades about 0.06 of its potential returns per unit of risk. Greenville Federal Financial is currently generating about 0.02 per unit of risk. If you would invest 1,070 in Magyar Bancorp on August 29, 2024 and sell it today you would earn a total of 321.00 from holding Magyar Bancorp or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
Magyar Bancorp vs. Greenville Federal Financial
Performance |
| Timeline |
| Magyar Bancorp |
| Greenville Federal |
Magyar Bancorp and Greenville Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magyar Bancorp and Greenville Federal
The main advantage of trading using opposite Magyar Bancorp and Greenville Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magyar Bancorp position performs unexpectedly, Greenville Federal 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 Greenville Federal will offset losses from the drop in Greenville Federal's 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 |
| Greenville Federal vs. First Bankers Trustshares | Greenville Federal vs. First Ottawa Bancshares | Greenville Federal vs. Coastal Carolina Bancshares | Greenville Federal vs. Citizens Bancorp Investment |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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