Correlation Between Tat Techno and MNB Holdings
Can any of the company-specific risk be diversified away by investing in both Tat Techno 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 Tat Techno and MNB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tat Techno and MNB Holdings Corp, you can compare the effects of market volatilities on Tat Techno 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 Tat Techno with a short position of MNB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tat Techno and MNB Holdings.
Diversification Opportunities for Tat Techno and MNB Holdings
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tat and MNB is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Tat Techno 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 Tat Techno 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 Tat Techno 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 Tat Techno i.e., Tat Techno and MNB Holdings go up and down completely randomly.
Pair Corralation between Tat Techno and MNB Holdings
Given the investment horizon of 90 days Tat Techno is expected to generate 1.33 times more return on investment than MNB Holdings. However, Tat Techno is 1.33 times more volatile than MNB Holdings Corp. It trades about 0.13 of its potential returns per unit of risk. MNB Holdings Corp is currently generating about -0.02 per unit of risk. If you would invest 597.00 in Tat Techno on November 2, 2024 and sell it today you would earn a total of 2,496 from holding Tat Techno or generate 418.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Tat Techno vs. MNB Holdings Corp
Performance |
| Timeline |
| Tat Techno |
| MNB Holdings Corp |
Tat Techno and MNB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tat Techno and MNB Holdings
The main advantage of trading using opposite Tat Techno and MNB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tat Techno 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.| Tat Techno vs. Innovative Solutions and | Tat Techno vs. CPI Aerostructures | Tat Techno vs. Air Industries Group | Tat Techno vs. Ballistic Recovery Systems |
| 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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