Correlation Between Prosperity Bancshares and Meridian Bancorp
Can any of the company-specific risk be diversified away by investing in both Prosperity Bancshares and Meridian 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 Prosperity Bancshares and Meridian Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prosperity Bancshares and Meridian Bancorp, you can compare the effects of market volatilities on Prosperity Bancshares and Meridian 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 Prosperity Bancshares with a short position of Meridian Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prosperity Bancshares and Meridian Bancorp.
Diversification Opportunities for Prosperity Bancshares and Meridian Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Prosperity and Meridian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Prosperity Bancshares and Meridian Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Bancorp and Prosperity Bancshares 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 Prosperity Bancshares are associated (or correlated) with Meridian Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Bancorp has no effect on the direction of Prosperity Bancshares i.e., Prosperity Bancshares and Meridian Bancorp go up and down completely randomly.
Pair Corralation between Prosperity Bancshares and Meridian Bancorp
If you would invest 6,226 in Prosperity Bancshares on December 29, 2023 and sell it today you would earn a total of 352.00 from holding Prosperity Bancshares or generate 5.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Prosperity Bancshares vs. Meridian Bancorp
Performance |
Timeline |
Prosperity Bancshares |
Meridian Bancorp |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Prosperity Bancshares and Meridian Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Prosperity Bancshares and Meridian Bancorp
The main advantage of trading using opposite Prosperity Bancshares and Meridian Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prosperity Bancshares position performs unexpectedly, Meridian 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 Meridian Bancorp will offset losses from the drop in Meridian Bancorp's long position.Prosperity Bancshares vs. Merchants Bancorp | Prosperity Bancshares vs. Axos Financial | Prosperity Bancshares vs. Regions Financial | Prosperity Bancshares vs. Regions Financial |
Meridian Bancorp vs. NetSol Technologies | Meridian Bancorp vs. Mattel Inc | Meridian Bancorp vs. Bill Com Holdings | Meridian Bancorp vs. Datadog |
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.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |