Correlation Between WesBanco and Merchants Bancorp
Can any of the company-specific risk be diversified away by investing in both WesBanco and Merchants 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 WesBanco and Merchants Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WesBanco and Merchants Bancorp PR, you can compare the effects of market volatilities on WesBanco and Merchants 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 WesBanco with a short position of Merchants Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of WesBanco and Merchants Bancorp.
Diversification Opportunities for WesBanco and Merchants Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WesBanco and Merchants is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WesBanco and Merchants Bancorp PR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Merchants Bancorp and WesBanco 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 WesBanco are associated (or correlated) with Merchants Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Merchants Bancorp has no effect on the direction of WesBanco i.e., WesBanco and Merchants Bancorp go up and down completely randomly.
Pair Corralation between WesBanco and Merchants Bancorp
If you would invest 2,479 in WesBanco on December 30, 2024 and sell it today you would earn a total of 43.00 from holding WesBanco or generate 1.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
WesBanco vs. Merchants Bancorp PR
Performance |
Timeline |
WesBanco |
Merchants Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
WesBanco and Merchants Bancorp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WesBanco and Merchants Bancorp
The main advantage of trading using opposite WesBanco and Merchants Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WesBanco position performs unexpectedly, Merchants 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 Merchants Bancorp will offset losses from the drop in Merchants Bancorp's long position.WesBanco vs. JD Sports Fashion | WesBanco vs. Catalyst Metals Limited | WesBanco vs. LG Display Co | WesBanco vs. East Africa Metals |
Merchants Bancorp vs. Valley National Bancorp | Merchants Bancorp vs. Valley National Bancorp | Merchants Bancorp vs. Wintrust Financial Corp | Merchants Bancorp vs. Medallion Bank PR |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |