Correlation Between MNB Holdings and Savi Financial
Can any of the company-specific risk be diversified away by investing in both MNB Holdings and Savi 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 Savi 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 Savi Financial, you can compare the effects of market volatilities on MNB Holdings and Savi 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 Savi Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of MNB Holdings and Savi Financial.
Diversification Opportunities for MNB Holdings and Savi Financial
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MNB and Savi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding MNB Holdings Corp and Savi Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savi Financial 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 Savi Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savi Financial has no effect on the direction of MNB Holdings i.e., MNB Holdings and Savi Financial go up and down completely randomly.
Pair Corralation between MNB Holdings and Savi Financial
If you would invest 1,505 in Savi Financial on October 11, 2024 and sell it today you would earn a total of 5.00 from holding Savi Financial or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MNB Holdings Corp vs. Savi Financial
Performance |
| Timeline |
| MNB Holdings Corp |
| Savi Financial |
MNB Holdings and Savi Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MNB Holdings and Savi Financial
The main advantage of trading using opposite MNB Holdings and Savi Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MNB Holdings position performs unexpectedly, Savi 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 Savi Financial will offset losses from the drop in Savi 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 |
| Savi Financial vs. Eurobank Ergasias Services | Savi Financial vs. Standard Bank Group | Savi Financial vs. Bank Central Asia | Savi Financial vs. PSB Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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