Correlation Analysis Between Luther Burbank and Metropolitan Bank

This module allows you to analyze existing cross correlation between Luther Burbank Corporation and Metropolitan Bank Holding Corp. You can compare the effects of market volatilities on Luther Burbank 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 Luther Burbank with a short position of Metropolitan Bank. See also your portfolio center. Please also check ongoing floating volatility patterns of Luther Burbank and Metropolitan Bank.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Luther Burbank  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Luther Burbank Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Luther Burbank is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
Metropolitan Bank  
1616

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Metropolitan Bank Holding Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Metropolitan Bank sustained solid returns over the last few months and may actually be approaching a breakup point.

Luther Burbank and Metropolitan Bank Volatility Contrast

 Predicted Return Density 
      Returns 

Luther Burbank Corp.  vs.  Metropolitan Bank Holding Corp

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Luther Burbank is expected to generate 6.07 times less return on investment than Metropolitan Bank. But when comparing it to its historical volatility, Luther Burbank Corporation is 1.01 times less risky than Metropolitan Bank. It trades about 0.04 of its potential returns per unit of risk. Metropolitan Bank Holding Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  3,946  in Metropolitan Bank Holding Corp on November 9, 2019 and sell it today you would earn a total of  709.00  from holding Metropolitan Bank Holding Corp or generate 17.97% return on investment over 30 days.

Pair Corralation between Luther Burbank and Metropolitan Bank

0.74
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Luther Burbank and Metropolitan Bank

Luther Burbank Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Luther Burbank Corp. and Metropolitan Bank Holding Corp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Metropolitan Bank and Luther Burbank 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 Luther Burbank Corporation 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 has no effect on the direction of Luther Burbank i.e. Luther Burbank and Metropolitan Bank go up and down completely randomly.
See also your portfolio center. Please also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.


 
Search macroaxis.com