Correlation Between Magyar Bancorp and Logansport Financial
Can any of the company-specific risk be diversified away by investing in both Magyar Bancorp 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 Magyar Bancorp and Logansport Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magyar Bancorp and Logansport Financial Corp, you can compare the effects of market volatilities on Magyar Bancorp 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 Magyar Bancorp with a short position of Logansport Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magyar Bancorp and Logansport Financial.
Diversification Opportunities for Magyar Bancorp and Logansport Financial
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Magyar and Logansport is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Magyar Bancorp 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 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 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 Magyar Bancorp i.e., Magyar Bancorp and Logansport Financial go up and down completely randomly.
Pair Corralation between Magyar Bancorp and Logansport Financial
If you would invest 4,050 in Logansport Financial Corp on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Logansport Financial Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.88% |
| Values | Daily Returns |
Magyar Bancorp vs. Logansport Financial Corp
Performance |
| Timeline |
| Magyar Bancorp |
| Logansport Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magyar Bancorp and Logansport Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magyar Bancorp and Logansport Financial
The main advantage of trading using opposite Magyar Bancorp and Logansport Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magyar Bancorp 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.| Magyar Bancorp vs. Home Federal Bancorp | Magyar Bancorp vs. Community West Bancshares | Magyar Bancorp vs. First Financial Northwest | Magyar Bancorp vs. First Northwest 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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