Correlation Between MNB Holdings and Pacific West
Can any of the company-specific risk be diversified away by investing in both MNB Holdings and Pacific West 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 Pacific West 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 Pacific West Bancorp, you can compare the effects of market volatilities on MNB Holdings and Pacific West 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 Pacific West. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNB Holdings and Pacific West.
Diversification Opportunities for MNB Holdings and Pacific West
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between MNB and Pacific is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding MNB Holdings Corp and Pacific West Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific West 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 Pacific West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific West Bancorp has no effect on the direction of MNB Holdings i.e., MNB Holdings and Pacific West go up and down completely randomly.
Pair Corralation between MNB Holdings and Pacific West
If you would invest 2,500 in MNB Holdings Corp on October 11, 2024 and sell it today you would earn a total of 0.00 from holding MNB Holdings Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MNB Holdings Corp vs. Pacific West Bancorp
Performance |
| Timeline |
| MNB Holdings Corp |
| Pacific West Bancorp |
MNB Holdings and Pacific West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNB Holdings and Pacific West
The main advantage of trading using opposite MNB Holdings and Pacific West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNB Holdings position performs unexpectedly, Pacific West 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 Pacific West will offset losses from the drop in Pacific West's long position.| MNB Holdings vs. Harbor Bankshares | MNB Holdings vs. Oconee Financial | MNB Holdings vs. Mission Valley Bancorp | MNB Holdings vs. MF Bancorp |
| Pacific West vs. XCPCNL Business Services | Pacific West vs. International Consolidated Companies | Pacific West vs. Mills Music Trust | Pacific West vs. Citrine Global 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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