Correlation Between Truist Financial and Berkshire Hills
Can any of the company-specific risk be diversified away by investing in both Truist Financial and Berkshire Hills 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 Truist Financial and Berkshire Hills into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truist Financial and Berkshire Hills Bancorp, you can compare the effects of market volatilities on Truist Financial and Berkshire Hills 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 Truist Financial with a short position of Berkshire Hills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truist Financial and Berkshire Hills.
Diversification Opportunities for Truist Financial and Berkshire Hills
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Truist and Berkshire is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Truist Financial and Berkshire Hills Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hills Bancorp and Truist 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 Truist Financial are associated (or correlated) with Berkshire Hills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkshire Hills Bancorp has no effect on the direction of Truist Financial i.e., Truist Financial and Berkshire Hills go up and down completely randomly.
Pair Corralation between Truist Financial and Berkshire Hills
Assuming the 90 days horizon Truist Financial is expected to generate 1.45 times less return on investment than Berkshire Hills. But when comparing it to its historical volatility, Truist Financial is 1.47 times less risky than Berkshire Hills. It trades about 0.06 of its potential returns per unit of risk. Berkshire Hills Bancorp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,313 in Berkshire Hills Bancorp on November 28, 2024 and sell it today you would earn a total of 367.00 from holding Berkshire Hills Bancorp or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Truist Financial vs. Berkshire Hills Bancorp
Performance |
| Timeline |
| Truist Financial |
| Berkshire Hills Bancorp |
Truist Financial and Berkshire Hills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truist Financial and Berkshire Hills
The main advantage of trading using opposite Truist Financial and Berkshire Hills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truist Financial position performs unexpectedly, Berkshire Hills 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 Berkshire Hills will offset losses from the drop in Berkshire Hills' long position.| Truist Financial vs. SALESFORCE INC CDR | Truist Financial vs. Fast Retailing Co | Truist Financial vs. Japan Medical Dynamic | Truist Financial vs. United Breweries Co |
| Berkshire Hills vs. DeVry Education Group | Berkshire Hills vs. ANGI Homeservices | Berkshire Hills vs. Grand Canyon Education | Berkshire Hills vs. American Homes 4 |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |