Correlation Between MNB Holdings and BEO Bancorp
Can any of the company-specific risk be diversified away by investing in both MNB Holdings and BEO Bancorp 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 MNB Holdings and BEO Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MNB Holdings Corp and BEO Bancorp, you can compare the effects of market volatilities on MNB Holdings and BEO Bancorp 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 MNB Holdings with a short position of BEO Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNB Holdings and BEO Bancorp.
Diversification Opportunities for MNB Holdings and BEO Bancorp
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MNB and BEO is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding MNB Holdings Corp and BEO Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEO Bancorp and MNB Holdings 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 MNB Holdings Corp are associated (or correlated) with BEO Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEO Bancorp has no effect on the direction of MNB Holdings i.e., MNB Holdings and BEO Bancorp go up and down completely randomly.
Pair Corralation between MNB Holdings and BEO Bancorp
Given the investment horizon of 90 days MNB Holdings Corp is expected to under-perform the BEO Bancorp. In addition to that, MNB Holdings is 1.17 times more volatile than BEO Bancorp. It trades about -0.05 of its total potential returns per unit of risk. BEO Bancorp is currently generating about -0.03 per unit of volatility. If you would invest 7,800 in BEO Bancorp on September 2, 2024 and sell it today you would lose (150.00) from holding BEO Bancorp or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MNB Holdings Corp vs. BEO Bancorp
Performance |
| Timeline |
| MNB Holdings Corp |
| BEO Bancorp |
MNB Holdings and BEO Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNB Holdings and BEO Bancorp
The main advantage of trading using opposite MNB Holdings and BEO Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNB Holdings position performs unexpectedly, BEO Bancorp 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 BEO Bancorp will offset losses from the drop in BEO Bancorp's long position.| MNB Holdings vs. Harbor Bankshares | MNB Holdings vs. Oconee Financial | MNB Holdings vs. Mission Valley Bancorp | MNB Holdings vs. MF Bancorp |
| BEO Bancorp vs. Piraeus Bank SA | BEO Bancorp vs. Turkiye Garanti Bankasi | BEO Bancorp 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| 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 | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |