Correlation Between Magyar Bancorp and Partners Bancorp
Can any of the company-specific risk be diversified away by investing in both Magyar Bancorp and Partners Bancorp 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 Partners Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magyar Bancorp and Partners Bancorp, you can compare the effects of market volatilities on Magyar Bancorp and Partners Bancorp 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 Partners Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magyar Bancorp and Partners Bancorp.
Diversification Opportunities for Magyar Bancorp and Partners Bancorp
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Magyar and Partners is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Magyar Bancorp and Partners Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Partners Bancorp 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 Partners Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Partners Bancorp has no effect on the direction of Magyar Bancorp i.e., Magyar Bancorp and Partners Bancorp go up and down completely randomly.
Pair Corralation between Magyar Bancorp and Partners Bancorp
If you would invest 689.00 in Partners Bancorp on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Partners Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Magyar Bancorp vs. Partners Bancorp
Performance |
| Timeline |
| Magyar Bancorp |
| Partners Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Magyar Bancorp and Partners Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magyar Bancorp and Partners Bancorp
The main advantage of trading using opposite Magyar Bancorp and Partners Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magyar Bancorp position performs unexpectedly, Partners Bancorp 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 Partners Bancorp will offset losses from the drop in Partners Bancorp'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 |
| Partners Bancorp vs. Home Federal Bancorp | Partners Bancorp vs. Magyar Bancorp | Partners Bancorp vs. Community West Bancshares | Partners Bancorp vs. Lake Shore 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |