Correlation Between Regions Financial and Equity Bancshares,

Can any of the company-specific risk be diversified away by investing in both Regions Financial and Equity 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 Regions Financial and Equity Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Regions Financial and Equity Bancshares,, you can compare the effects of market volatilities on Regions Financial and Equity 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 Regions Financial with a short position of Equity Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and Equity Bancshares,.

Diversification Opportunities for Regions Financial and Equity Bancshares,

0.97

Correlation Coefficient

Regions Financial  Equity Bancshares,

Almost no diversification

The 3 months correlation between Regions and Equity is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and Equity Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Bancshares, 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 Equity Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Bancshares, has no effect on the direction of Regions Financial i.e., Regions Financial and Equity Bancshares, go up and down completely randomly.

Pair Corralation between Regions Financial and Equity Bancshares,

Allowing for the 90-day total investment horizon Regions Financial is expected to under-perform the Equity Bancshares,. But the stock apears to be less risky and, when comparing its historical volatility, Regions Financial is 1.23 times less risky than Equity Bancshares,. The stock trades about -0.1 of its potential returns per unit of risk. The Equity Bancshares, is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  4,740  in Equity Bancshares, on September 13, 2024 and sell it today you would earn a total of  27.00  from holding Equity Bancshares, or generate 0.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Regions Financial  vs.  Equity Bancshares,

Regions Financial

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Regions Financial are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Regions Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Equity Bancshares,

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Equity Bancshares, are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, Equity Bancshares, disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regions Financial and Equity Bancshares,

The main advantage of trading using opposite Regions Financial and Equity Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, Equity 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 Equity Bancshares, will offset losses from the drop in Equity Bancshares,'s long position.

The idea behind Regions Financial and Equity 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.