Correlation Between MT Bank and Critic Clothing
Can any of the company-specific risk be diversified away by investing in both MT Bank and Critic Clothing 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 MT Bank and Critic Clothing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MT Bank and Critic Clothing, you can compare the effects of market volatilities on MT Bank and Critic Clothing 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 MT Bank with a short position of Critic Clothing. Check out your portfolio center. Please also check ongoing floating volatility patterns of MT Bank and Critic Clothing.
Diversification Opportunities for MT Bank and Critic Clothing
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MTB and Critic is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding MT Bank and Critic Clothing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Critic Clothing and MT Bank 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 MT Bank are associated (or correlated) with Critic Clothing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Critic Clothing has no effect on the direction of MT Bank i.e., MT Bank and Critic Clothing go up and down completely randomly.
Pair Corralation between MT Bank and Critic Clothing
Considering the 90-day investment horizon MT Bank is expected to under-perform the Critic Clothing. But the stock apears to be less risky and, when comparing its historical volatility, MT Bank is 2.51 times less risky than Critic Clothing. The stock trades about -0.08 of its potential returns per unit of risk. The Critic Clothing is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 0.48 in Critic Clothing on August 27, 2025 and sell it today you would earn a total of 0.12 from holding Critic Clothing or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
MT Bank vs. Critic Clothing
Performance |
| Timeline |
| MT Bank |
| Critic Clothing |
MT Bank and Critic Clothing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MT Bank and Critic Clothing
The main advantage of trading using opposite MT Bank and Critic Clothing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MT Bank position performs unexpectedly, Critic Clothing 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 Critic Clothing will offset losses from the drop in Critic Clothing's long position.| MT Bank vs. Critic Clothing | MT Bank vs. G III Apparel Group | MT Bank vs. Enduro Metals | MT Bank vs. Ark Restaurants Corp |
| Critic Clothing vs. Waste Management | Critic Clothing vs. Republic Services | Critic Clothing vs. Waste Connections | Critic Clothing vs. Veolia Environnement SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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