Correlation Between MNB Holdings and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both MNB Holdings and CCSB Financial 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 CCSB Financial 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 CCSB Financial Corp, you can compare the effects of market volatilities on MNB Holdings and CCSB Financial 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 CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNB Holdings and CCSB Financial.
Diversification Opportunities for MNB Holdings and CCSB Financial
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MNB and CCSB is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding MNB Holdings Corp and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp 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 CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of MNB Holdings i.e., MNB Holdings and CCSB Financial go up and down completely randomly.
Pair Corralation between MNB Holdings and CCSB Financial
Given the investment horizon of 90 days MNB Holdings Corp is expected to generate 0.96 times more return on investment than CCSB Financial. However, MNB Holdings Corp is 1.05 times less risky than CCSB Financial. It trades about -0.06 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.11 per unit of risk. If you would invest 2,400 in MNB Holdings Corp on August 31, 2024 and sell it today you would lose (25.00) from holding MNB Holdings Corp or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MNB Holdings Corp vs. CCSB Financial Corp
Performance |
| Timeline |
| MNB Holdings Corp |
| CCSB Financial Corp |
MNB Holdings and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNB Holdings and CCSB Financial
The main advantage of trading using opposite MNB Holdings and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNB Holdings position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| MNB Holdings vs. Bank Mandiri Persero | MNB Holdings vs. Piraeus Bank SA | MNB Holdings vs. Eurobank Ergasias Services | MNB Holdings vs. Kasikornbank Public Co |
| CCSB Financial vs. Peoples Educational Holdings | CCSB Financial vs. Xunlei Ltd Adr | CCSB Financial vs. Bright Scholar Education | CCSB Financial vs. Lincoln Educational Services |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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