Correlation Between Susquehanna Community and Mifflinburg Bancorp
Can any of the company-specific risk be diversified away by investing in both Susquehanna Community and Mifflinburg Bancorp 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 Susquehanna Community and Mifflinburg Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Susquehanna Community Financial and Mifflinburg Bancorp, you can compare the effects of market volatilities on Susquehanna Community and Mifflinburg Bancorp 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 Susquehanna Community with a short position of Mifflinburg Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susquehanna Community and Mifflinburg Bancorp.
Diversification Opportunities for Susquehanna Community and Mifflinburg Bancorp
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Susquehanna and Mifflinburg is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Susquehanna Community Financia and Mifflinburg Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mifflinburg Bancorp and Susquehanna Community 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 Susquehanna Community Financial are associated (or correlated) with Mifflinburg Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mifflinburg Bancorp has no effect on the direction of Susquehanna Community i.e., Susquehanna Community and Mifflinburg Bancorp go up and down completely randomly.
Pair Corralation between Susquehanna Community and Mifflinburg Bancorp
Given the investment horizon of 90 days Susquehanna Community Financial is expected to generate 0.73 times more return on investment than Mifflinburg Bancorp. However, Susquehanna Community Financial is 1.37 times less risky than Mifflinburg Bancorp. It trades about -0.09 of its potential returns per unit of risk. Mifflinburg Bancorp is currently generating about -0.35 per unit of risk. If you would invest 1,250 in Susquehanna Community Financial on November 10, 2024 and sell it today you would lose (10.00) from holding Susquehanna Community Financial or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Susquehanna Community Financia vs. Mifflinburg Bancorp
Performance |
| Timeline |
| Susquehanna Community |
| Mifflinburg Bancorp |
Susquehanna Community and Mifflinburg Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Susquehanna Community and Mifflinburg Bancorp
The main advantage of trading using opposite Susquehanna Community and Mifflinburg Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susquehanna Community position performs unexpectedly, Mifflinburg Bancorp 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 Mifflinburg Bancorp will offset losses from the drop in Mifflinburg Bancorp's long position.| Susquehanna Community vs. CCFNB Bancorp | Susquehanna Community vs. Mifflinburg Bancorp | Susquehanna Community vs. Woodlands Financial Services | Susquehanna Community vs. Penns Woods Bancorp |
| Mifflinburg Bancorp vs. IF Bancorp | Mifflinburg Bancorp vs. Home Bancorp | Mifflinburg Bancorp vs. ConnectOne Bancorp | Mifflinburg Bancorp vs. First Northwest 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |