Correlation Between Pioneer Bankcorp and Merchants Marine
Can any of the company-specific risk be diversified away by investing in both Pioneer Bankcorp 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 Pioneer Bankcorp and Merchants Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer Bankcorp and Merchants Marine Bancorp, you can compare the effects of market volatilities on Pioneer Bankcorp 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 Pioneer Bankcorp with a short position of Merchants Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer Bankcorp and Merchants Marine.
Diversification Opportunities for Pioneer Bankcorp and Merchants Marine
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pioneer and Merchants is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Bankcorp 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 Pioneer Bankcorp 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 Pioneer Bankcorp 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 Pioneer Bankcorp i.e., Pioneer Bankcorp and Merchants Marine go up and down completely randomly.
Pair Corralation between Pioneer Bankcorp and Merchants Marine
Given the investment horizon of 90 days Pioneer Bankcorp is expected to generate 1.22 times more return on investment than Merchants Marine. However, Pioneer Bankcorp is 1.22 times more volatile than Merchants Marine Bancorp. It trades about 0.13 of its potential returns per unit of risk. Merchants Marine Bancorp is currently generating about -0.08 per unit of risk. If you would invest 4,911 in Pioneer Bankcorp on January 17, 2025 and sell it today you would earn a total of 89.00 from holding Pioneer Bankcorp or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pioneer Bankcorp vs. Merchants Marine Bancorp
Performance |
| Timeline |
| Pioneer Bankcorp |
| Merchants Marine Bancorp |
Pioneer Bankcorp and Merchants Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer Bankcorp and Merchants Marine
The main advantage of trading using opposite Pioneer Bankcorp and Merchants Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Bankcorp 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.| Pioneer Bankcorp vs. FineMark Holdings | Pioneer Bankcorp vs. Oxford Bank | Pioneer Bankcorp vs. Prime Meridian Holding | Pioneer Bankcorp vs. Oconee 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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