Correlation Between MNB Holdings and Citizens Financial
Can any of the company-specific risk be diversified away by investing in both MNB Holdings and Citizens 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 Citizens 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 Citizens Financial Corp, you can compare the effects of market volatilities on MNB Holdings and Citizens 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 Citizens Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNB Holdings and Citizens Financial.
Diversification Opportunities for MNB Holdings and Citizens Financial
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between MNB and Citizens is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding MNB Holdings Corp and Citizens Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens 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 Citizens Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Financial Corp has no effect on the direction of MNB Holdings i.e., MNB Holdings and Citizens Financial go up and down completely randomly.
Pair Corralation between MNB Holdings and Citizens Financial
Given the investment horizon of 90 days MNB Holdings is expected to generate 17.36 times less return on investment than Citizens Financial. But when comparing it to its historical volatility, MNB Holdings Corp is 1.54 times less risky than Citizens Financial. It trades about 0.01 of its potential returns per unit of risk. Citizens Financial Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,629 in Citizens Financial Corp on November 30, 2024 and sell it today you would earn a total of 1,271 from holding Citizens Financial Corp or generate 78.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 30.77% |
| Values | Daily Returns |
MNB Holdings Corp vs. Citizens Financial Corp
Performance |
| Timeline |
| MNB Holdings Corp |
| Citizens Financial Corp |
MNB Holdings and Citizens Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNB Holdings and Citizens Financial
The main advantage of trading using opposite MNB Holdings and Citizens Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNB Holdings position performs unexpectedly, Citizens 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 Citizens Financial will offset losses from the drop in Citizens Financial's long position.| MNB Holdings vs. Harbor Bankshares | MNB Holdings vs. Oconee Financial | MNB Holdings vs. Mission Valley Bancorp | MNB Holdings vs. MF Bancorp |
| Citizens Financial vs. Century Next Financial | Citizens Financial vs. Triad Business Bank | Citizens Financial vs. First Ottawa Bancshares | Citizens Financial vs. First Community 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |