Correlation Between NYSE Composite and MVB Financial
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and MVB 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 NYSE Composite and MVB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and MVB Financial Corp, you can compare the effects of market volatilities on NYSE Composite and MVB 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 NYSE Composite with a short position of MVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and MVB Financial.
Diversification Opportunities for NYSE Composite and MVB Financial
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NYSE and MVB is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and MVB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MVB Financial Corp and NYSE Composite 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 NYSE Composite are associated (or correlated) with MVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MVB Financial Corp has no effect on the direction of NYSE Composite i.e., NYSE Composite and MVB Financial go up and down completely randomly.
Pair Corralation between NYSE Composite and MVB Financial
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.26 times more return on investment than MVB Financial. However, NYSE Composite is 3.82 times less risky than MVB Financial. It trades about 0.08 of its potential returns per unit of risk. MVB Financial Corp is currently generating about 0.01 per unit of risk. If you would invest 1,585,955 in NYSE Composite on September 3, 2024 and sell it today you would earn a total of 441,249 from holding NYSE Composite or generate 27.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. MVB Financial Corp
Performance |
| Timeline |
NYSE Composite and MVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
MVB Financial Corp
Pair trading matchups for MVB Financial
Pair Trading with NYSE Composite and MVB Financial
The main advantage of trading using opposite NYSE Composite and MVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, MVB 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 MVB Financial will offset losses from the drop in MVB Financial's long position.| NYSE Composite vs. Lindblad Expeditions Holdings | NYSE Composite vs. LB Foster | NYSE Composite vs. HUTCHMED DRC | NYSE Composite vs. Bridgford Foods |
| MVB Financial vs. Community West Bancshares | MVB Financial vs. First Financial Northwest | MVB Financial vs. CF Bankshares | MVB Financial vs. Home Federal 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |