Correlation Between WT Offshore and Umpqua Holdings

Can any of the company-specific risk be diversified away by investing in both WT Offshore and Umpqua Holdings 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 WT Offshore and Umpqua Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for WT Offshore and Umpqua Holdings

0.0

Correlation Coefficient

WT Offshore  Umpqua Holdings

Pay attention - limited upside

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

Pair Corralation between WT Offshore and Umpqua Holdings

If you would invest  151.00  in WT Offshore on October 24, 2024 and sell it today you would earn a total of  22.00  from holding WT Offshore or generate 14.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

WT Offshore  vs.  Umpqua Holdings

WT Offshore

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days WT Offshore has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Umpqua Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Umpqua Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Umpqua Holdings is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with WT Offshore and Umpqua Holdings

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

The idea behind WT Offshore and Umpqua Holdings 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..