Correlation Between Caseys General and Cullen/Frost Bankers
Can any of the company-specific risk be diversified away by investing in both Caseys General and Cullen/Frost 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 Caseys General and Cullen/Frost Bankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and CullenFrost Bankers, you can compare the effects of market volatilities on Caseys General and Cullen/Frost 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 Caseys General with a short position of Cullen/Frost Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Cullen/Frost Bankers.
Diversification Opportunities for Caseys General and Cullen/Frost Bankers
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Caseys and Cullen/Frost is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and CullenFrost Bankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cullen/Frost Bankers and Caseys General 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 Caseys General Stores are associated (or correlated) with Cullen/Frost Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cullen/Frost Bankers has no effect on the direction of Caseys General i.e., Caseys General and Cullen/Frost Bankers go up and down completely randomly.
Pair Corralation between Caseys General and Cullen/Frost Bankers
Assuming the 90 days trading horizon Caseys General Stores is expected to generate 1.01 times more return on investment than Cullen/Frost Bankers. However, Caseys General is 1.01 times more volatile than CullenFrost Bankers. It trades about 0.08 of its potential returns per unit of risk. CullenFrost Bankers is currently generating about 0.05 per unit of risk. If you would invest 26,256 in Caseys General Stores on December 11, 2024 and sell it today you would earn a total of 9,944 from holding Caseys General Stores or generate 37.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caseys General Stores vs. CullenFrost Bankers
Performance |
| Timeline |
| Caseys General Stores |
| Cullen/Frost Bankers |
Caseys General and Cullen/Frost Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and Cullen/Frost Bankers
The main advantage of trading using opposite Caseys General and Cullen/Frost Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, Cullen/Frost 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 Cullen/Frost Bankers will offset losses from the drop in Cullen/Frost Bankers' long position.| Caseys General vs. AGRICULTBK HADR25 YC | ||
| Caseys General vs. Agricultural Bank of | ||
| Caseys General vs. Hanison Construction Holdings | ||
| Caseys General vs. CARSALESCOM |
| Cullen/Frost Bankers vs. UNITED UTILITIES GR | ||
| Cullen/Frost Bankers vs. NorAm Drilling AS | ||
| Cullen/Frost Bankers vs. United Utilities Group | ||
| Cullen/Frost Bankers vs. Perseus Mining Limited |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |