Correlation Between Regions Financial and Origin Bancorp,

Can any of the company-specific risk be diversified away by investing in both Regions Financial and Origin 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 Origin 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 Origin Bancorp,, you can compare the effects of market volatilities on Regions Financial and Origin 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 Origin Bancorp,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and Origin Bancorp,.

Diversification Opportunities for Regions Financial and Origin Bancorp,

0.82

Correlation Coefficient

Regions Financial  Origin Bancorp,

Very poor diversification

The 3 months correlation between Regions and Origin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and Origin Bancorp, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin 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 Origin Bancorp,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Bancorp, has no effect on the direction of Regions Financial i.e., Regions Financial and Origin Bancorp, go up and down completely randomly.

Pair Corralation between Regions Financial and Origin Bancorp,

Allowing for the 90-day total investment horizon Regions Financial is expected to under-perform the Origin Bancorp,. But the stock apears to be less risky and, when comparing its historical volatility, Regions Financial is 1.17 times less risky than Origin Bancorp,. The stock trades about -0.24 of its potential returns per unit of risk. The Origin Bancorp, is currently generating about -0.2 of returns per unit of risk over similar time horizon. If you would invest  3,603  in Origin Bancorp, on October 9, 2024 and sell it today you would lose (262.00) from holding Origin Bancorp, or give up 7.27% of portfolio value over 90 days.

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

Regions Financial  vs.  Origin Bancorp,

Regions Financial

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Regions Financial are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Regions Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Origin Bancorp,

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Origin Bancorp, are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile fundamental drivers, Origin Bancorp, may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Regions Financial and Origin Bancorp,

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

The idea behind Regions Financial and Origin Bancorp, 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.