Correlation Between Mid Southern and LINKBANCORP

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

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

Diversification Opportunities for Mid Southern and LINKBANCORP

0.0

Correlation Coefficient

Mid Southern  LINKBANCORP

Pay attention - limited upside

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

Pair Corralation between Mid Southern and LINKBANCORP

If you would invest  673.00  in LINKBANCORP on May 5, 2025 and sell it today you would lose (3.00) from holding LINKBANCORP or give up 0.45% of portfolio value over 90 days.

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

Mid Southern Bancorp  vs.  LINKBANCORP

Mid Southern Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mid Southern Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Mid Southern is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

LINKBANCORP

Risk-Adjusted Performance

Very Weak

Over the last 90 days LINKBANCORP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, LINKBANCORP is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mid Southern and LINKBANCORP

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

The idea behind Mid Southern Bancorp and LINKBANCORP 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.