Correlation Between Park National and Malaga Financial
Can any of the company-specific risk be diversified away by investing in both Park National and Malaga 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 Park National and Malaga Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Park National and Malaga Financial, you can compare the effects of market volatilities on Park National and Malaga 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 Park National with a short position of Malaga Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park National and Malaga Financial.
Diversification Opportunities for Park National and Malaga Financial
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Park and Malaga is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Park National and Malaga Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaga Financial and Park National 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 Park National are associated (or correlated) with Malaga Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malaga Financial has no effect on the direction of Park National i.e., Park National and Malaga Financial go up and down completely randomly.
Pair Corralation between Park National and Malaga Financial
Considering the 90-day investment horizon Park National is expected to under-perform the Malaga Financial. In addition to that, Park National is 1.15 times more volatile than Malaga Financial. It trades about -0.11 of its total potential returns per unit of risk. Malaga Financial is currently generating about -0.05 per unit of volatility. If you would invest 2,120 in Malaga Financial on November 28, 2024 and sell it today you would lose (28.00) from holding Malaga Financial or give up 1.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Park National vs. Malaga Financial
Performance |
| Timeline |
| Park National |
| Malaga Financial |
Park National and Malaga Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park National and Malaga Financial
The main advantage of trading using opposite Park National and Malaga Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park National position performs unexpectedly, Malaga 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 Malaga Financial will offset losses from the drop in Malaga Financial's long position.| Park National vs. Peoples Bancorp | Park National vs. Lakeland Financial | Park National vs. NBT Bancorp | Park National vs. Trustmark |
| Malaga Financial vs. MF Bancorp | Malaga Financial vs. United Bancorporation of | Malaga Financial vs. Harbor Bankshares | Malaga Financial vs. BankFirst Capital |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |