Correlation Between Axos Financial and CullenFrost Bankers
Can any of the company-specific risk be diversified away by investing in both Axos Financial and CullenFrost Bankers 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 Axos Financial and CullenFrost Bankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and CullenFrost Bankers, you can compare the effects of market volatilities on Axos Financial and CullenFrost Bankers 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 Axos Financial with a short position of CullenFrost Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and CullenFrost Bankers.
Diversification Opportunities for Axos Financial and CullenFrost Bankers
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axos and CullenFrost is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and CullenFrost Bankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CullenFrost Bankers and Axos 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 Axos Financial are associated (or correlated) with CullenFrost Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CullenFrost Bankers has no effect on the direction of Axos Financial i.e., Axos Financial and CullenFrost Bankers go up and down completely randomly.
Pair Corralation between Axos Financial and CullenFrost Bankers
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 4.22 times more return on investment than CullenFrost Bankers. However, Axos Financial is 4.22 times more volatile than CullenFrost Bankers. It trades about 0.23 of its potential returns per unit of risk. CullenFrost Bankers is currently generating about -0.15 per unit of risk. If you would invest 6,703 in Axos Financial on August 29, 2024 and sell it today you would earn a total of 1,675 from holding Axos Financial or generate 24.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. CullenFrost Bankers
Performance |
| Timeline |
| Axos Financial |
| CullenFrost Bankers |
Axos Financial and CullenFrost Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and CullenFrost Bankers
The main advantage of trading using opposite Axos Financial and CullenFrost Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, CullenFrost Bankers 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 CullenFrost Bankers will offset losses from the drop in CullenFrost Bankers' long position.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| CullenFrost Bankers vs. Truist Financial | CullenFrost Bankers vs. Citizens Financial Group | CullenFrost Bankers vs. Bank of America | CullenFrost Bankers vs. US Bancorp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |