Correlation Between Monarch Mining and Glen Burnie

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

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

Diversification Opportunities for Monarch Mining and Glen Burnie

0.0

Correlation Coefficient

Monarch Mining  Glen Burnie

Pay attention - limited upside

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

Pair Corralation between Monarch Mining and Glen Burnie

If you would invest  410.00  in Glen Burnie Bancorp on May 7, 2025 and sell it today you would lose (3.00) from holding Glen Burnie Bancorp or give up 0.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Monarch Mining  vs.  Glen Burnie Bancorp

Monarch Mining

Risk-Adjusted Performance

Weakest

Over the last 90 days Monarch Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Monarch Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Glen Burnie Bancorp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Glen Burnie Bancorp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong fundamental drivers, Glen Burnie is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Monarch Mining and Glen Burnie

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

The idea behind Monarch Mining and Glen Burnie 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.