Correlation Between Ffbw and Metropolitan Bank
Can any of the company-specific risk be diversified away by investing in both Ffbw and Metropolitan Bank 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 Ffbw and Metropolitan Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ffbw Inc and Metropolitan Bank Holding, you can compare the effects of market volatilities on Ffbw and Metropolitan Bank 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 Ffbw with a short position of Metropolitan Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ffbw and Metropolitan Bank.
Diversification Opportunities for Ffbw and Metropolitan Bank
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ffbw and Metropolitan is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ffbw Inc and Metropolitan Bank Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metropolitan Bank Holding and Ffbw 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 Ffbw Inc are associated (or correlated) with Metropolitan Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metropolitan Bank Holding has no effect on the direction of Ffbw i.e., Ffbw and Metropolitan Bank go up and down completely randomly.
Pair Corralation between Ffbw and Metropolitan Bank
If you would invest 3,671 in Metropolitan Bank Holding on January 24, 2024 and sell it today you would earn a total of 598.00 from holding Metropolitan Bank Holding or generate 16.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ffbw Inc vs. Metropolitan Bank Holding
Performance |
| Timeline |
| Ffbw Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Metropolitan Bank Holding |
Ffbw and Metropolitan Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ffbw and Metropolitan Bank
The main advantage of trading using opposite Ffbw and Metropolitan Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ffbw position performs unexpectedly, Metropolitan Bank 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 Metropolitan Bank will offset losses from the drop in Metropolitan Bank's long position.| Ffbw vs. Nmb Financial Corp | Ffbw vs. Hang Seng Bank | Ffbw vs. Southern BancShares NC | Ffbw vs. CCSB Financial Corp |
| Metropolitan Bank vs. HMN Financial | Metropolitan Bank vs. Lake Shore Bancorp | Metropolitan Bank vs. Rhinebeck 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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