Correlation Between MetroCity Bankshares and Westbury Bancorp

Can any of the company-specific risk be diversified away by investing in both MetroCity Bankshares and Westbury 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 MetroCity Bankshares and Westbury Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MetroCity Bankshares and Westbury Bancorp, you can compare the effects of market volatilities on MetroCity Bankshares and Westbury 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 MetroCity Bankshares with a short position of Westbury Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MetroCity Bankshares and Westbury Bancorp.

Diversification Opportunities for MetroCity Bankshares and Westbury Bancorp

0.0

Correlation Coefficient

MetroCity Bankshares  Westbury Bancorp

Pay attention - limited upside

The 3 months correlation between MetroCity and Westbury is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MetroCity Bankshares and Westbury Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westbury Bancorp and MetroCity Bankshares 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 MetroCity Bankshares are associated (or correlated) with Westbury Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westbury Bancorp has no effect on the direction of MetroCity Bankshares i.e., MetroCity Bankshares and Westbury Bancorp go up and down completely randomly.

Pair Corralation between MetroCity Bankshares and Westbury Bancorp

If you would invest (100.00) in Westbury Bancorp on December 22, 2024 and sell it today you would earn a total of  100.00  from holding Westbury Bancorp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

MetroCity Bankshares  vs.  Westbury Bancorp

MetroCity Bankshares

Risk-Adjusted Performance

Very Weak

Over the last 90 days MetroCity Bankshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Westbury Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Westbury Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental drivers, Westbury Bancorp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with MetroCity Bankshares and Westbury Bancorp

The main advantage of trading using opposite MetroCity Bankshares and Westbury Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MetroCity Bankshares position performs unexpectedly, Westbury 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 Westbury Bancorp will offset losses from the drop in Westbury Bancorp's long position.

The idea behind MetroCity Bankshares and Westbury Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.