Correlation Between Mifflinburg Bancorp and Wayne Savings
Can any of the company-specific risk be diversified away by investing in both Mifflinburg Bancorp and Wayne Savings 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 Wayne Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mifflinburg Bancorp and Wayne Savings Bancshares, you can compare the effects of market volatilities on Mifflinburg Bancorp and Wayne Savings 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 Wayne Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mifflinburg Bancorp and Wayne Savings.
Diversification Opportunities for Mifflinburg Bancorp and Wayne Savings
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mifflinburg and Wayne is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Mifflinburg Bancorp and Wayne Savings Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wayne Savings Bancshares 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 Wayne Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wayne Savings Bancshares has no effect on the direction of Mifflinburg Bancorp i.e., Mifflinburg Bancorp and Wayne Savings go up and down completely randomly.
Pair Corralation between Mifflinburg Bancorp and Wayne Savings
If you would invest 2,550 in Mifflinburg Bancorp on August 26, 2024 and sell it today you would lose (315.00) from holding Mifflinburg Bancorp or give up 12.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.49% |
| Values | Daily Returns |
Mifflinburg Bancorp vs. Wayne Savings Bancshares
Performance |
| Timeline |
| Mifflinburg Bancorp |
| Wayne Savings Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mifflinburg Bancorp and Wayne Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mifflinburg Bancorp and Wayne Savings
The main advantage of trading using opposite Mifflinburg Bancorp and Wayne Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mifflinburg Bancorp position performs unexpectedly, Wayne Savings 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 Wayne Savings will offset losses from the drop in Wayne Savings' long position.| Mifflinburg Bancorp vs. Mauch Chunk Trust | Mifflinburg Bancorp vs. Juniata Valley Financial | Mifflinburg Bancorp vs. MBT Bancshares |
| Wayne Savings vs. First IC | Wayne Savings vs. CCFNB Bancorp | Wayne Savings vs. Glen Burnie Bancorp | Wayne Savings vs. Main Street 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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