Correlation Between Meridian Bank and TC Bancshares
Can any of the company-specific risk be diversified away by investing in both Meridian Bank and TC Bancshares 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 Meridian Bank and TC Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meridian Bank and TC Bancshares, you can compare the effects of market volatilities on Meridian Bank and TC Bancshares 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 Meridian Bank with a short position of TC Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meridian Bank and TC Bancshares.
Diversification Opportunities for Meridian Bank and TC Bancshares
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Meridian and TCBC is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Meridian Bank and TC Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TC Bancshares and Meridian Bank 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 Meridian Bank are associated (or correlated) with TC Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TC Bancshares has no effect on the direction of Meridian Bank i.e., Meridian Bank and TC Bancshares go up and down completely randomly.
Pair Corralation between Meridian Bank and TC Bancshares
If you would invest 1,350 in Meridian Bank on August 28, 2024 and sell it today you would earn a total of 281.00 from holding Meridian Bank or generate 20.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Meridian Bank vs. TC Bancshares
Performance |
| Timeline |
| Meridian Bank |
| TC Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Meridian Bank and TC Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meridian Bank and TC Bancshares
The main advantage of trading using opposite Meridian Bank and TC Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meridian Bank position performs unexpectedly, TC Bancshares 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 TC Bancshares will offset losses from the drop in TC Bancshares' long position.| Meridian Bank vs. Community West Bancshares | Meridian Bank vs. Investar Holding Corp | Meridian Bank vs. Finward Bancorp | Meridian Bank vs. First Financial Northwest |
| TC Bancshares vs. Home Federal Bancorp | TC Bancshares vs. Lake Shore Bancorp | TC Bancshares vs. Community West Bancshares | TC Bancshares vs. First Financial Northwest |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |