Correlation Between Oconee Financial and Merchants Marine
Can any of the company-specific risk be diversified away by investing in both Oconee 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 Oconee 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 Oconee Financial and Merchants Marine Bancorp, you can compare the effects of market volatilities on Oconee 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 Oconee Financial with a short position of Merchants Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oconee Financial and Merchants Marine.
Diversification Opportunities for Oconee Financial and Merchants Marine
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oconee and Merchants is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Oconee Financial 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 Oconee 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 Oconee Financial 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 Oconee Financial i.e., Oconee Financial and Merchants Marine go up and down completely randomly.
Pair Corralation between Oconee Financial and Merchants Marine
Given the investment horizon of 90 days Oconee Financial is expected to generate 1.78 times less return on investment than Merchants Marine. But when comparing it to its historical volatility, Oconee Financial is 10.3 times less risky than Merchants Marine. It trades about 0.29 of its potential returns per unit of risk. Merchants Marine Bancorp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,375 in Merchants Marine Bancorp on August 26, 2024 and sell it today you would earn a total of 125.00 from holding Merchants Marine Bancorp or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oconee Financial vs. Merchants Marine Bancorp
Performance |
| Timeline |
| Oconee Financial |
| Merchants Marine Bancorp |
Oconee Financial and Merchants Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oconee Financial and Merchants Marine
The main advantage of trading using opposite Oconee Financial and Merchants Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oconee 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.| Oconee Financial vs. PSB Holdings | Oconee Financial vs. United Overseas Bank | Oconee Financial vs. Turkiye Garanti Bankasi |
| 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
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |