Correlation Between Virginia National and Mid Southern
Can any of the company-specific risk be diversified away by investing in both Virginia National and Mid Southern 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 Virginia National and Mid Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virginia National Bankshares and Mid Southern Bancorp, you can compare the effects of market volatilities on Virginia National and Mid Southern 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 Virginia National with a short position of Mid Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virginia National and Mid Southern.
Diversification Opportunities for Virginia National and Mid Southern
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Virginia and Mid is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Virginia National Bankshares and Mid Southern Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Southern Bancorp and Virginia 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 Virginia National Bankshares are associated (or correlated) with Mid Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Southern Bancorp has no effect on the direction of Virginia National i.e., Virginia National and Mid Southern go up and down completely randomly.
Pair Corralation between Virginia National and Mid Southern
If you would invest 3,567 in Virginia National Bankshares on November 7, 2024 and sell it today you would earn a total of 146.00 from holding Virginia National Bankshares or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Virginia National Bankshares vs. Mid Southern Bancorp
Performance |
| Timeline |
| Virginia National |
| Mid Southern Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Virginia National and Mid Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virginia National and Mid Southern
The main advantage of trading using opposite Virginia National and Mid Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virginia National position performs unexpectedly, Mid Southern 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 Mid Southern will offset losses from the drop in Mid Southern's long position.| Virginia National vs. US Bancorp | Virginia National vs. Truist Financial Corp | Virginia National vs. KeyCorp | Virginia National vs. Citizens Financial Group, |
| Mid Southern vs. Community West Bancshares | Mid Southern vs. First Financial Northwest | Mid Southern vs. CF Bankshares | Mid Southern vs. Home Federal 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |