Correlation Between Axos Financial and Meridian Bancorp
Can any of the company-specific risk be diversified away by investing in both Axos Financial 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 Axos Financial and Meridian Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and Meridian Bancorp, you can compare the effects of market volatilities on Axos Financial 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 Axos Financial with a short position of Meridian Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Meridian Bancorp.
Diversification Opportunities for Axos Financial and Meridian Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axos and Meridian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and Meridian Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Bancorp and Axos Financial 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 Axos 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 Axos Financial i.e., Axos Financial and Meridian Bancorp go up and down completely randomly.
Pair Corralation between Axos Financial and Meridian Bancorp
If you would invest (100.00) in Meridian Bancorp on January 25, 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 |
Axos Financial vs. Meridian Bancorp
Performance |
| Timeline |
| Axos Financial |
| Meridian Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Axos Financial and Meridian Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and Meridian Bancorp
The main advantage of trading using opposite Axos Financial and Meridian Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial 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.| Axos Financial vs. Cullman Bancorp | Axos Financial vs. Home Federal Bancorp | Axos Financial vs. First Financial Northwest | Axos Financial vs. First Northwest Bancorp |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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