Correlation Between Regions Financial and Generations Bancorp

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

By analyzing existing cross correlation between Regions Financial and Generations Bancorp NY, you can compare the effects of market volatilities on Regions Financial and Generations Bancorp 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 Generations Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and Generations Bancorp.

Diversification Opportunities for Regions Financial and Generations Bancorp

0.0

Correlation Coefficient

Regions Financial  Generations Bancorp

Pay attention - limited upside

The 3 months correlation between Regions and Generations is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and Generations Bancorp NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Generations Bancorp 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 Generations Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Generations Bancorp has no effect on the direction of Regions Financial i.e., Regions Financial and Generations Bancorp go up and down completely randomly.

Pair Corralation between Regions Financial and Generations Bancorp

If you would invest (100.00) in Generations Bancorp NY on December 11, 2024 and sell it today you would earn a total of  100.00  from holding Generations Bancorp NY or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Regions Financial  vs.  Generations Bancorp NY

Regions Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regions Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Generations Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Generations Bancorp NY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Generations Bancorp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Regions Financial and Generations Bancorp

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

The idea behind Regions Financial and Generations Bancorp NY 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.