Correlation Between Chiba Bank and WesBanco
Can any of the company-specific risk be diversified away by investing in both Chiba Bank and WesBanco 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 Chiba Bank and WesBanco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiba Bank Ltd and WesBanco, you can compare the effects of market volatilities on Chiba Bank and WesBanco 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 Chiba Bank with a short position of WesBanco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiba Bank and WesBanco.
Diversification Opportunities for Chiba Bank and WesBanco
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chiba and WesBanco is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Chiba Bank Ltd and WesBanco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WesBanco and Chiba Bank 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 Chiba Bank Ltd are associated (or correlated) with WesBanco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WesBanco has no effect on the direction of Chiba Bank i.e., Chiba Bank and WesBanco go up and down completely randomly.
Pair Corralation between Chiba Bank and WesBanco
Assuming the 90 days horizon Chiba Bank is expected to generate 1.87 times less return on investment than WesBanco. In addition to that, Chiba Bank is 3.23 times more volatile than WesBanco. It trades about 0.03 of its total potential returns per unit of risk. WesBanco is currently generating about 0.19 per unit of volatility. If you would invest 2,436 in WesBanco on September 12, 2024 and sell it today you would earn a total of 94.00 from holding WesBanco or generate 3.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Chiba Bank Ltd vs. WesBanco
Performance |
| Timeline |
| Chiba Bank |
| WesBanco |
Chiba Bank and WesBanco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiba Bank and WesBanco
The main advantage of trading using opposite Chiba Bank and WesBanco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiba Bank position performs unexpectedly, WesBanco 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 WesBanco will offset losses from the drop in WesBanco's long position.| Chiba Bank vs. First Hawaiian | Chiba Bank vs. Central Pacific Financial | Chiba Bank vs. Territorial Bancorp | Chiba Bank vs. Comerica |
| WesBanco vs. Kontoor Brands | WesBanco vs. Ralph Lauren Corp | WesBanco vs. Nike Inc | WesBanco vs. Vita Coco |
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.
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