Correlation Between Security Bank and MNB Holdings
Can any of the company-specific risk be diversified away by investing in both Security Bank and MNB Holdings 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 Security Bank and MNB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Security Bank and MNB Holdings Corp, you can compare the effects of market volatilities on Security Bank and MNB Holdings 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 Security Bank with a short position of MNB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Security Bank and MNB Holdings.
Diversification Opportunities for Security Bank and MNB Holdings
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Security and MNB is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Security Bank and MNB Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNB Holdings Corp and Security Bank 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 Security Bank are associated (or correlated) with MNB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNB Holdings Corp has no effect on the direction of Security Bank i.e., Security Bank and MNB Holdings go up and down completely randomly.
Pair Corralation between Security Bank and MNB Holdings
If you would invest 2,605 in MNB Holdings Corp on September 14, 2024 and sell it today you would lose (105.00) from holding MNB Holdings Corp or give up 4.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Security Bank vs. MNB Holdings Corp
Performance |
| Timeline |
| Security Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MNB Holdings Corp |
Security Bank and MNB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Security Bank and MNB Holdings
The main advantage of trading using opposite Security Bank and MNB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Security Bank position performs unexpectedly, MNB Holdings 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 MNB Holdings will offset losses from the drop in MNB Holdings' long position.| Security Bank vs. Merchants Marine Bancorp | Security Bank vs. First Bancorp | Security Bank vs. CNB Financial | Security Bank vs. MNB Holdings Corp |
| MNB Holdings vs. Harbor Bankshares | MNB Holdings vs. Oconee Financial | MNB Holdings vs. Mission Valley Bancorp | MNB Holdings 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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