Correlation Between MVB Financial and Great Southern
Can any of the company-specific risk be diversified away by investing in both MVB Financial and Great Southern 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 MVB Financial and Great Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MVB Financial Corp and Great Southern Bancorp, you can compare the effects of market volatilities on MVB Financial and Great Southern 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 MVB Financial with a short position of Great Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of MVB Financial and Great Southern.
Diversification Opportunities for MVB Financial and Great Southern
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MVB and Great is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding MVB Financial Corp and Great Southern Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Southern Bancorp and MVB Financial 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 MVB Financial Corp are associated (or correlated) with Great Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Southern Bancorp has no effect on the direction of MVB Financial i.e., MVB Financial and Great Southern go up and down completely randomly.
Pair Corralation between MVB Financial and Great Southern
Given the investment horizon of 90 days MVB Financial Corp is expected to generate 1.36 times more return on investment than Great Southern. However, MVB Financial is 1.36 times more volatile than Great Southern Bancorp. It trades about 0.16 of its potential returns per unit of risk. Great Southern Bancorp is currently generating about 0.19 per unit of risk. If you would invest 1,874 in MVB Financial Corp on September 4, 2024 and sell it today you would earn a total of 285.00 from holding MVB Financial Corp or generate 15.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MVB Financial Corp vs. Great Southern Bancorp
Performance |
| Timeline |
| MVB Financial Corp |
| Great Southern Bancorp |
MVB Financial and Great Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MVB Financial and Great Southern
The main advantage of trading using opposite MVB Financial and Great Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MVB Financial position performs unexpectedly, Great Southern 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 Great Southern will offset losses from the drop in Great Southern's long position.| MVB Financial vs. Community West Bancshares | MVB Financial vs. First Financial Northwest | MVB Financial vs. CF Bankshares | MVB Financial vs. Home Federal Bancorp |
| Great Southern vs. International Bancshares | Great Southern vs. Finward Bancorp | Great Southern vs. Aquagold International | Great Southern vs. Thrivent High Yield |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stocks Directory Find actively traded stocks across global markets |