Correlation Between Peoples United and Meridian Bancorp
Can any of the company-specific risk be diversified away by investing in both Peoples United 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 Peoples United and Meridian Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peoples United Financial and Meridian Bancorp, you can compare the effects of market volatilities on Peoples United 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 Peoples United with a short position of Meridian Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peoples United and Meridian Bancorp.
Diversification Opportunities for Peoples United and Meridian Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Peoples and Meridian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Peoples United Financial and Meridian Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Bancorp and Peoples United 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 Peoples United Financial 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 Peoples United i.e., Peoples United and Meridian Bancorp go up and down completely randomly.
Pair Corralation between Peoples United and Meridian Bancorp
If you would invest (100.00) in Meridian Bancorp on January 16, 2024 and sell it today you would earn a total of 100.00 from holding Meridian Bancorp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Peoples United Financial vs. Meridian Bancorp
Performance |
| Timeline |
| Peoples United Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Meridian Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Peoples United and Meridian Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peoples United and Meridian Bancorp
The main advantage of trading using opposite Peoples United and Meridian Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peoples United 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.| Peoples United vs. Diamond Estates Wines | Peoples United vs. Corby Spirit and | Peoples United vs. Getty Images Holdings | Peoples United vs. Keurig Dr Pepper |
| Meridian Bancorp vs. NMI Holdings | Meridian Bancorp vs. Rocky Brands | Meridian Bancorp vs. Palomar Holdings | Meridian Bancorp vs. National Western Life |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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