Correlation Between CullenFrost Bankers and Air Transport
Can any of the company-specific risk be diversified away by investing in both CullenFrost Bankers and Air Transport 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 CullenFrost Bankers and Air Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CullenFrost Bankers and Air Transport Services, you can compare the effects of market volatilities on CullenFrost Bankers and Air Transport 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 CullenFrost Bankers with a short position of Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of CullenFrost Bankers and Air Transport.
Diversification Opportunities for CullenFrost Bankers and Air Transport
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CullenFrost and Air is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding CullenFrost Bankers and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services and CullenFrost Bankers 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 CullenFrost Bankers are associated (or correlated) with Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of CullenFrost Bankers i.e., CullenFrost Bankers and Air Transport go up and down completely randomly.
Pair Corralation between CullenFrost Bankers and Air Transport
Assuming the 90 days horizon CullenFrost Bankers is expected to generate 2.48 times more return on investment than Air Transport. However, CullenFrost Bankers is 2.48 times more volatile than Air Transport Services. It trades about 0.04 of its potential returns per unit of risk. Air Transport Services is currently generating about 0.05 per unit of risk. If you would invest 13,505 in CullenFrost Bankers on October 26, 2024 and sell it today you would earn a total of 195.00 from holding CullenFrost Bankers or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CullenFrost Bankers vs. Air Transport Services
Performance |
| Timeline |
| CullenFrost Bankers |
| Air Transport Services |
CullenFrost Bankers and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CullenFrost Bankers and Air Transport
The main advantage of trading using opposite CullenFrost Bankers and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CullenFrost Bankers position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| CullenFrost Bankers vs. The PNC Financial | CullenFrost Bankers vs. Huntington Bancshares Incorporated | CullenFrost Bankers vs. Regions Financial | CullenFrost Bankers vs. KeyCorp |
| Air Transport vs. Teradata Corp | Air Transport vs. DICKER DATA LTD | Air Transport vs. Meta Financial Group | Air Transport vs. CullenFrost Bankers |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |