Correlation Between Midland States and Lakeland Bancorp
Can any of the company-specific risk be diversified away by investing in both Midland States and Lakeland Bancorp 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 Midland States and Lakeland Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Midland States Bancorp and Lakeland Bancorp, you can compare the effects of market volatilities on Midland States and Lakeland Bancorp 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 Midland States with a short position of Lakeland Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Midland States and Lakeland Bancorp.
Diversification Opportunities for Midland States and Lakeland Bancorp
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Midland and Lakeland is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Midland States Bancorp and Lakeland Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Bancorp and Midland States 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 Midland States Bancorp are associated (or correlated) with Lakeland Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Bancorp has no effect on the direction of Midland States i.e., Midland States and Lakeland Bancorp go up and down completely randomly.
Pair Corralation between Midland States and Lakeland Bancorp
If you would invest 2,187 in Midland States Bancorp on September 3, 2024 and sell it today you would earn a total of 498.00 from holding Midland States Bancorp or generate 22.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
Midland States Bancorp vs. Lakeland Bancorp
Performance |
| Timeline |
| Midland States Bancorp |
| Lakeland Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Midland States and Lakeland Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Midland States and Lakeland Bancorp
The main advantage of trading using opposite Midland States and Lakeland Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Midland States position performs unexpectedly, Lakeland Bancorp 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 Lakeland Bancorp will offset losses from the drop in Lakeland Bancorp's long position.| Midland States vs. MidWestOne Financial Group | Midland States vs. Equity Bancshares, | Midland States vs. First Mid Illinois | Midland States vs. ConnectOne Bancorp |
| Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland Bancorp vs. LINKBANCORP |
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
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |