Correlation Between Mifflinburg Bancorp and QNB Corp
Can any of the company-specific risk be diversified away by investing in both Mifflinburg Bancorp and QNB Corp 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 QNB Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mifflinburg Bancorp and QNB Corp, you can compare the effects of market volatilities on Mifflinburg Bancorp and QNB Corp 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 QNB Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mifflinburg Bancorp and QNB Corp.
Diversification Opportunities for Mifflinburg Bancorp and QNB Corp
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mifflinburg and QNB is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Mifflinburg Bancorp and QNB Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QNB 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 QNB Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QNB Corp has no effect on the direction of Mifflinburg Bancorp i.e., Mifflinburg Bancorp and QNB Corp go up and down completely randomly.
Pair Corralation between Mifflinburg Bancorp and QNB Corp
Given the investment horizon of 90 days Mifflinburg Bancorp is expected to generate 6.8 times less return on investment than QNB Corp. In addition to that, Mifflinburg Bancorp is 1.74 times more volatile than QNB Corp. It trades about 0.0 of its total potential returns per unit of risk. QNB Corp is currently generating about 0.04 per unit of volatility. If you would invest 2,346 in QNB Corp on September 3, 2024 and sell it today you would earn a total of 954.00 from holding QNB Corp or generate 40.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.33% |
| Values | Daily Returns |
Mifflinburg Bancorp vs. QNB Corp
Performance |
| Timeline |
| Mifflinburg Bancorp |
| QNB Corp |
Mifflinburg Bancorp and QNB Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mifflinburg Bancorp and QNB Corp
The main advantage of trading using opposite Mifflinburg Bancorp and QNB Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mifflinburg Bancorp position performs unexpectedly, QNB Corp 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 QNB Corp will offset losses from the drop in QNB Corp's long position.| Mifflinburg Bancorp vs. Mauch Chunk Trust | Mifflinburg Bancorp vs. Juniata Valley Financial | Mifflinburg Bancorp vs. MBT Bancshares |
| QNB Corp vs. Western Asset Global | QNB Corp vs. Invesco Trust For | QNB Corp vs. Logan Ridge Finance | QNB Corp vs. Invesco Advantage MIT |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |