Correlation Between MNB Holdings and First Hawaiian
Can any of the company-specific risk be diversified away by investing in both MNB Holdings and First Hawaiian 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 First Hawaiian 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 First Hawaiian, you can compare the effects of market volatilities on MNB Holdings and First Hawaiian 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 First Hawaiian. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNB Holdings and First Hawaiian.
Diversification Opportunities for MNB Holdings and First Hawaiian
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MNB and First is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding MNB Holdings Corp and First Hawaiian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Hawaiian 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 First Hawaiian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Hawaiian has no effect on the direction of MNB Holdings i.e., MNB Holdings and First Hawaiian go up and down completely randomly.
Pair Corralation between MNB Holdings and First Hawaiian
Given the investment horizon of 90 days MNB Holdings Corp is expected to generate 1.27 times more return on investment than First Hawaiian. However, MNB Holdings is 1.27 times more volatile than First Hawaiian. It trades about 0.1 of its potential returns per unit of risk. First Hawaiian is currently generating about 0.02 per unit of risk. If you would invest 2,450 in MNB Holdings Corp on September 12, 2024 and sell it today you would earn a total of 50.00 from holding MNB Holdings Corp or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
MNB Holdings Corp vs. First Hawaiian
Performance |
| Timeline |
| MNB Holdings Corp |
| First Hawaiian |
MNB Holdings and First Hawaiian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNB Holdings and First Hawaiian
The main advantage of trading using opposite MNB Holdings and First Hawaiian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNB Holdings position performs unexpectedly, First Hawaiian 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 First Hawaiian will offset losses from the drop in First Hawaiian's long position.| MNB Holdings vs. PT Bank Rakyat | MNB Holdings vs. Morningstar Unconstrained Allocation | MNB Holdings vs. Bondbloxx ETF Trust | MNB Holdings vs. Spring Valley Acquisition |
| First Hawaiian vs. Territorial Bancorp | First Hawaiian vs. Bank of Hawaii | First Hawaiian vs. Financial Institutions | First Hawaiian vs. Heritage 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets |