Correlation Between Mifflinburg Bancorp and Delhi Bank
Can any of the company-specific risk be diversified away by investing in both Mifflinburg Bancorp and Delhi Bank 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 Delhi Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mifflinburg Bancorp and Delhi Bank Corp, you can compare the effects of market volatilities on Mifflinburg Bancorp and Delhi Bank 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 Delhi Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mifflinburg Bancorp and Delhi Bank.
Diversification Opportunities for Mifflinburg Bancorp and Delhi Bank
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mifflinburg and Delhi is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mifflinburg Bancorp and Delhi Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delhi Bank Corp 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 Delhi Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delhi Bank Corp has no effect on the direction of Mifflinburg Bancorp i.e., Mifflinburg Bancorp and Delhi Bank go up and down completely randomly.
Pair Corralation between Mifflinburg Bancorp and Delhi Bank
Given the investment horizon of 90 days Mifflinburg Bancorp is expected to generate 1.54 times less return on investment than Delhi Bank. In addition to that, Mifflinburg Bancorp is 4.84 times more volatile than Delhi Bank Corp. It trades about 0.0 of its total potential returns per unit of risk. Delhi Bank Corp is currently generating about 0.02 per unit of volatility. If you would invest 2,002 in Delhi Bank Corp on August 26, 2024 and sell it today you would earn a total of 48.00 from holding Delhi Bank Corp or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 69.59% |
| Values | Daily Returns |
Mifflinburg Bancorp vs. Delhi Bank Corp
Performance |
| Timeline |
| Mifflinburg Bancorp |
| Delhi Bank Corp |
Mifflinburg Bancorp and Delhi Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mifflinburg Bancorp and Delhi Bank
The main advantage of trading using opposite Mifflinburg Bancorp and Delhi Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mifflinburg Bancorp position performs unexpectedly, Delhi Bank 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 Delhi Bank will offset losses from the drop in Delhi Bank's long position.| Mifflinburg Bancorp vs. Mauch Chunk Trust | Mifflinburg Bancorp vs. Juniata Valley Financial | Mifflinburg Bancorp vs. MBT Bancshares |
| Delhi Bank vs. Standard Bank Group | Delhi Bank vs. PSB Holdings | Delhi Bank vs. United Overseas Bank | Delhi Bank vs. Turkiye Garanti Bankasi |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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