Correlation Between Mission Bancorp and MF Bancorp

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

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

Diversification Opportunities for Mission Bancorp and MF Bancorp

0.17

Correlation Coefficient

Mission Bancorp  MF Bancorp

Average diversification

The 3 months correlation between Mission and MFBP is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mission Bancorp and MF Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MF Bancorp and Mission Bancorp 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 Mission Bancorp are associated (or correlated) with MF Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MF Bancorp has no effect on the direction of Mission Bancorp i.e., Mission Bancorp and MF Bancorp go up and down completely randomly.

Pair Corralation between Mission Bancorp and MF Bancorp

If you would invest  9,200  in Mission Bancorp on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Mission Bancorp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Mission Bancorp  vs.  MF Bancorp

Mission Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mission Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Mission Bancorp is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

MF Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MF Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest uncertain performance, the Stock's fundamental drivers remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Mission Bancorp and MF Bancorp

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

The idea behind Mission Bancorp and MF 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.