Correlation Between Mifflinburg Bancorp and FNB
Can any of the company-specific risk be diversified away by investing in both Mifflinburg Bancorp and FNB 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 FNB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mifflinburg Bancorp and FNB Inc, you can compare the effects of market volatilities on Mifflinburg Bancorp and FNB 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 FNB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mifflinburg Bancorp and FNB.
Diversification Opportunities for Mifflinburg Bancorp and FNB
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mifflinburg and FNB is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mifflinburg Bancorp and FNB Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB Inc 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 FNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB Inc has no effect on the direction of Mifflinburg Bancorp i.e., Mifflinburg Bancorp and FNB go up and down completely randomly.
Pair Corralation between Mifflinburg Bancorp and FNB
Given the investment horizon of 90 days Mifflinburg Bancorp is expected to under-perform the FNB. But the pink sheet apears to be less risky and, when comparing its historical volatility, Mifflinburg Bancorp is 2.01 times less risky than FNB. The pink sheet trades about -0.35 of its potential returns per unit of risk. The FNB Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,270 in FNB Inc on November 8, 2024 and sell it today you would earn a total of 20.00 from holding FNB Inc or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.82% |
| Values | Daily Returns |
Mifflinburg Bancorp vs. FNB Inc
Performance |
| Timeline |
| Mifflinburg Bancorp |
| FNB Inc |
Mifflinburg Bancorp and FNB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mifflinburg Bancorp and FNB
The main advantage of trading using opposite Mifflinburg Bancorp and FNB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mifflinburg Bancorp position performs unexpectedly, FNB 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 FNB will offset losses from the drop in FNB's long position.| Mifflinburg Bancorp vs. Mauch Chunk Trust | Mifflinburg Bancorp vs. Juniata Valley Financial | Mifflinburg Bancorp vs. MBT Bancshares |
| FNB vs. Century Financial Corp | FNB vs. Apollo Bancorp | FNB vs. Commercial National Financial | FNB vs. Eastern Michigan Financial |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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