Correlation Between Nmb Financial and Merchants Marine
Can any of the company-specific risk be diversified away by investing in both Nmb Financial and Merchants Marine 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 Nmb Financial and Merchants Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nmb Financial Corp and Merchants Marine Bancorp, you can compare the effects of market volatilities on Nmb Financial and Merchants Marine 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 Nmb Financial with a short position of Merchants Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nmb Financial and Merchants Marine.
Diversification Opportunities for Nmb Financial and Merchants Marine
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nmb and Merchants is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nmb Financial Corp and Merchants Marine Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merchants Marine Bancorp and Nmb 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 Nmb Financial Corp are associated (or correlated) with Merchants Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merchants Marine Bancorp has no effect on the direction of Nmb Financial i.e., Nmb Financial and Merchants Marine go up and down completely randomly.
Pair Corralation between Nmb Financial and Merchants Marine
Given the investment horizon of 90 days Nmb Financial Corp is expected to generate 1.05 times more return on investment than Merchants Marine. However, Nmb Financial is 1.05 times more volatile than Merchants Marine Bancorp. It trades about 0.33 of its potential returns per unit of risk. Merchants Marine Bancorp is currently generating about 0.0 per unit of risk. If you would invest 1,026 in Nmb Financial Corp on September 3, 2024 and sell it today you would earn a total of 374.00 from holding Nmb Financial Corp or generate 36.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Nmb Financial Corp vs. Merchants Marine Bancorp
Performance |
| Timeline |
| Nmb Financial Corp |
| Merchants Marine Bancorp |
Nmb Financial and Merchants Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nmb Financial and Merchants Marine
The main advantage of trading using opposite Nmb Financial and Merchants Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nmb Financial position performs unexpectedly, Merchants Marine 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 Merchants Marine will offset losses from the drop in Merchants Marine's long position.| Nmb Financial vs. First IC | Nmb Financial vs. Merchants Marine Bancorp | Nmb Financial vs. United Bancorporation of | Nmb Financial vs. U I Financial |
| Merchants Marine vs. Mission Valley Bancorp | Merchants Marine vs. Harbor Bankshares | Merchants Marine vs. Oconee Financial | Merchants Marine vs. MF Bancorp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |