Correlation Between Manufactured Housing and Shore Bancshares

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Can any of the company-specific risk be diversified away by investing in both Manufactured Housing and Shore Bancshares 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 Manufactured Housing and Shore Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manufactured Housing Properties and Shore Bancshares, you can compare the effects of market volatilities on Manufactured Housing and Shore Bancshares 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 Manufactured Housing with a short position of Shore Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manufactured Housing and Shore Bancshares.

Diversification Opportunities for Manufactured Housing and Shore Bancshares

0.61
  Correlation Coefficient

Poor diversification

The 3 months correlation between Manufactured and Shore is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Manufactured Housing Propertie and Shore Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shore Bancshares and Manufactured Housing 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 Manufactured Housing Properties are associated (or correlated) with Shore Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shore Bancshares has no effect on the direction of Manufactured Housing i.e., Manufactured Housing and Shore Bancshares go up and down completely randomly.

Pair Corralation between Manufactured Housing and Shore Bancshares

Given the investment horizon of 90 days Manufactured Housing Properties is expected to under-perform the Shore Bancshares. In addition to that, Manufactured Housing is 14.12 times more volatile than Shore Bancshares. It trades about -0.14 of its total potential returns per unit of risk. Shore Bancshares is currently generating about -0.46 per unit of volatility. If you would invest  1,889  in Shore Bancshares on July 3, 2022 and sell it today you would lose (157.00)  from holding Shore Bancshares or give up 8.31% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Manufactured Housing Propertie  vs.  Shore Bancshares

 Performance (%) 
       Timeline  
Manufactured Housing 
Manufactured Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Manufactured Housing Properties are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Manufactured Housing sustained solid returns over the last few months and may actually be approaching a breakup point.

Manufactured Price Channel

Shore Bancshares 
Shore Performance
0 of 100
Over the last 90 days Shore Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Shore Price Channel

Manufactured Housing and Shore Bancshares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Manufactured Housing and Shore Bancshares

The main advantage of trading using opposite Manufactured Housing and Shore Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manufactured Housing position performs unexpectedly, Shore Bancshares 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 Shore Bancshares will offset losses from the drop in Shore Bancshares' long position.
Manufactured Housing vs. Amazon Inc
The idea behind Manufactured Housing Properties and Shore Bancshares 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.
Shore Bancshares vs. Amazon Inc
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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