Correlation Between Regions Financial and Associated Banc
Can any of the company-specific risk be diversified away by investing in both Regions Financial and Associated Banc 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 Regions Financial and Associated Banc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regions Financial and Associated Banc Corp, you can compare the effects of market volatilities on Regions Financial and Associated Banc 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 Regions Financial with a short position of Associated Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and Associated Banc.
Diversification Opportunities for Regions Financial and Associated Banc
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regions and Associated is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and Associated Banc Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Banc Corp and Regions 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 Regions Financial are associated (or correlated) with Associated Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Banc Corp has no effect on the direction of Regions Financial i.e., Regions Financial and Associated Banc go up and down completely randomly.
Pair Corralation between Regions Financial and Associated Banc
Allowing for the 90-day total investment horizon Regions Financial is expected to under-perform the Associated Banc. In addition to that, Regions Financial is 1.62 times more volatile than Associated Banc Corp. It trades about -0.09 of its total potential returns per unit of risk. Associated Banc Corp is currently generating about -0.02 per unit of volatility. If you would invest 2,013 in Associated Banc Corp on December 29, 2024 and sell it today you would lose (22.00) from holding Associated Banc Corp or give up 1.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Regions Financial vs. Associated Banc Corp
Performance |
Timeline |
Regions Financial |
Associated Banc Corp |
Regions Financial and Associated Banc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Regions Financial and Associated Banc
The main advantage of trading using opposite Regions Financial and Associated Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, Associated Banc 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 Associated Banc will offset losses from the drop in Associated Banc's long position.Regions Financial vs. KeyCorp | Regions Financial vs. Fifth Third Bancorp | Regions Financial vs. Zions Bancorporation | Regions Financial vs. Huntington Bancshares Incorporated |
Associated Banc vs. Associated Banc Corp | Associated Banc vs. Truist Financial | Associated Banc vs. Citizens Financial Group | Associated Banc vs. Webster Financial |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |