Correlation Between MYnd Analytics and Meridian Bancorp

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

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

Diversification Opportunities for MYnd Analytics and Meridian Bancorp

0.0

Correlation Coefficient

MYnd Analytics  Meridian Bancorp

Pay attention - limited upside

The 3 months correlation between MYnd and Meridian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MYnd Analytics and Meridian Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Bancorp and MYnd Analytics 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 MYnd Analytics 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 MYnd Analytics i.e., MYnd Analytics and Meridian Bancorp go up and down completely randomly.

Pair Corralation between MYnd Analytics and Meridian Bancorp

If you would invest (100.00) in Meridian Bancorp on February 8, 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

MYnd Analytics  vs.  Meridian Bancorp

MYnd Analytics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MYnd Analytics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in June 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Meridian Bancorp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with MYnd Analytics and Meridian Bancorp

The main advantage of trading using opposite MYnd Analytics and Meridian Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYnd Analytics 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.

The idea behind MYnd Analytics and Meridian 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.