Correlation Between Mifflinburg Bancorp and Apollo Bancorp
Can any of the company-specific risk be diversified away by investing in both Mifflinburg Bancorp and Apollo 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 Mifflinburg Bancorp and Apollo Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mifflinburg Bancorp and Apollo Bancorp, you can compare the effects of market volatilities on Mifflinburg Bancorp and Apollo 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 Mifflinburg Bancorp with a short position of Apollo Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mifflinburg Bancorp and Apollo Bancorp.
Diversification Opportunities for Mifflinburg Bancorp and Apollo Bancorp
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mifflinburg and Apollo is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Mifflinburg Bancorp and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and Mifflinburg 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 Mifflinburg Bancorp are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Mifflinburg Bancorp i.e., Mifflinburg Bancorp and Apollo Bancorp go up and down completely randomly.
Pair Corralation between Mifflinburg Bancorp and Apollo Bancorp
Given the investment horizon of 90 days Mifflinburg Bancorp is expected to generate 1.4 times more return on investment than Apollo Bancorp. However, Mifflinburg Bancorp is 1.4 times more volatile than Apollo Bancorp. It trades about 0.01 of its potential returns per unit of risk. Apollo Bancorp is currently generating about 0.02 per unit of risk. If you would invest 2,691 in Mifflinburg Bancorp on August 29, 2024 and sell it today you would lose (341.00) from holding Mifflinburg Bancorp or give up 12.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.15% |
| Values | Daily Returns |
Mifflinburg Bancorp vs. Apollo Bancorp
Performance |
| Timeline |
| Mifflinburg Bancorp |
| Apollo Bancorp |
Mifflinburg Bancorp and Apollo Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mifflinburg Bancorp and Apollo Bancorp
The main advantage of trading using opposite Mifflinburg Bancorp and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mifflinburg Bancorp position performs unexpectedly, Apollo 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 Apollo Bancorp will offset losses from the drop in Apollo Bancorp's long position.| Mifflinburg Bancorp vs. Mauch Chunk Trust | Mifflinburg Bancorp vs. Juniata Valley Financial | Mifflinburg Bancorp vs. MBT Bancshares |
| Apollo Bancorp vs. The Farmers Bank | Apollo Bancorp vs. Bank of Utica | Apollo Bancorp vs. Delhi Bank Corp | Apollo Bancorp vs. CCSB Financial Corp |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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