United Community Correlations

The current 90-days correlation between United Community Banks and Pinnacle Financial Partners is -0.03 (i.e., Good diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as United Community moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if United Community Banks moves in either direction, the perfectly negatively correlated security will move in the opposite direction.

The ability to find closely correlated positions to United Community could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace United Community when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back United Community - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling United Community Banks to buy it.