Correlation Between Malaga Financial and Exchange Bankshares
Can any of the company-specific risk be diversified away by investing in both Malaga Financial and Exchange Bankshares 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 Malaga Financial and Exchange Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Malaga Financial and Exchange Bankshares, you can compare the effects of market volatilities on Malaga Financial and Exchange Bankshares 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 Malaga Financial with a short position of Exchange Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malaga Financial and Exchange Bankshares.
Diversification Opportunities for Malaga Financial and Exchange Bankshares
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Malaga and Exchange is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Malaga Financial and Exchange Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Bankshares and Malaga Financial 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 Malaga Financial are associated (or correlated) with Exchange Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Bankshares has no effect on the direction of Malaga Financial i.e., Malaga Financial and Exchange Bankshares go up and down completely randomly.
Pair Corralation between Malaga Financial and Exchange Bankshares
Given the investment horizon of 90 days Malaga Financial is expected to generate 30.59 times less return on investment than Exchange Bankshares. But when comparing it to its historical volatility, Malaga Financial is 1.49 times less risky than Exchange Bankshares. It trades about 0.0 of its potential returns per unit of risk. Exchange Bankshares is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4,100 in Exchange Bankshares on September 1, 2024 and sell it today you would earn a total of 700.00 from holding Exchange Bankshares or generate 17.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Malaga Financial vs. Exchange Bankshares
Performance |
| Timeline |
| Malaga Financial |
| Exchange Bankshares |
Malaga Financial and Exchange Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malaga Financial and Exchange Bankshares
The main advantage of trading using opposite Malaga Financial and Exchange Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malaga Financial position performs unexpectedly, Exchange Bankshares 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 Exchange Bankshares will offset losses from the drop in Exchange Bankshares' long position.| Malaga Financial vs. MF Bancorp | Malaga Financial vs. United Bancorporation of | Malaga Financial vs. Harbor Bankshares | Malaga Financial vs. BankFirst Capital |
| Exchange Bankshares vs. Piraeus Bank SA | Exchange Bankshares vs. Turkiye Garanti Bankasi | Exchange Bankshares vs. Delhi Bank Corp | Exchange Bankshares vs. Uwharrie Capital 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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