| MBWM Stock | | | USD 48.58 0.13 0.27% |
The current 90-days correlation between Mercantile Bank and First Bancorp is 0.74 (i.e., Poor diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Mercantile Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mercantile Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
Mercantile Bank Correlation With Market
Poor diversification
The correlation between Mercantile Bank and DJI is 0.64 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Mercantile Bank and DJI in the same portfolio, assuming nothing else is changed.
Check out
Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Mercantile Bank. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in housing.
To learn how to invest in Mercantile Stock, please use our
How to Invest in Mercantile Bank guide.