Correlation Between Maplebear Common and Webster Financial
Can any of the company-specific risk be diversified away by investing in both Maplebear Common and Webster Financial 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 Maplebear Common and Webster Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maplebear Common Stock and Webster Financial, you can compare the effects of market volatilities on Maplebear Common and Webster Financial 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 Maplebear Common with a short position of Webster Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maplebear Common and Webster Financial.
Diversification Opportunities for Maplebear Common and Webster Financial
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maplebear and Webster is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Maplebear Common Stock and Webster Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webster Financial and Maplebear Common 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 Maplebear Common Stock are associated (or correlated) with Webster Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webster Financial has no effect on the direction of Maplebear Common i.e., Maplebear Common and Webster Financial go up and down completely randomly.
Pair Corralation between Maplebear Common and Webster Financial
Given the investment horizon of 90 days Maplebear Common Stock is expected to generate 1.51 times more return on investment than Webster Financial. However, Maplebear Common is 1.51 times more volatile than Webster Financial. It trades about 0.04 of its potential returns per unit of risk. Webster Financial is currently generating about 0.03 per unit of risk. If you would invest 3,370 in Maplebear Common Stock on August 26, 2024 and sell it today you would earn a total of 952.00 from holding Maplebear Common Stock or generate 28.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 60.36% |
| Values | Daily Returns |
Maplebear Common Stock vs. Webster Financial
Performance |
| Timeline |
| Maplebear Common Stock |
| Webster Financial |
Maplebear Common and Webster Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maplebear Common and Webster Financial
The main advantage of trading using opposite Maplebear Common and Webster Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maplebear Common position performs unexpectedly, Webster Financial 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 Webster Financial will offset losses from the drop in Webster Financial's long position.| Maplebear Common vs. Natural Alternatives International | Maplebear Common vs. Marine Products | Maplebear Common vs. Playa Hotels Resorts | Maplebear Common vs. Mattel Inc |
| Webster Financial vs. KeyCorp | Webster Financial vs. Associated Banc Corp | Webster Financial vs. New York Community | Webster Financial vs. Synovus Financial Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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