Correlation Between Hilltop Holdings and United Community
Can any of the company-specific risk be diversified away by investing in both Hilltop Holdings and United Community 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 Hilltop Holdings and United Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilltop Holdings and United Community Banks, you can compare the effects of market volatilities on Hilltop Holdings and United Community 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 Hilltop Holdings with a short position of United Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilltop Holdings and United Community.
Diversification Opportunities for Hilltop Holdings and United Community
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hilltop and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hilltop Holdings and United Community Banks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Community Banks and Hilltop Holdings 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 Hilltop Holdings are associated (or correlated) with United Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Community Banks has no effect on the direction of Hilltop Holdings i.e., Hilltop Holdings and United Community go up and down completely randomly.
Pair Corralation between Hilltop Holdings and United Community
If you would invest 3,251 in Hilltop Holdings on November 9, 2024 and sell it today you would earn a total of 26.00 from holding Hilltop Holdings or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Hilltop Holdings vs. United Community Banks
Performance |
| Timeline |
| Hilltop Holdings |
| United Community Banks |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Hilltop Holdings and United Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilltop Holdings and United Community
The main advantage of trading using opposite Hilltop Holdings and United Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilltop Holdings position performs unexpectedly, United Community 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 United Community will offset losses from the drop in United Community's long position.| Hilltop Holdings vs. Home Federal Bancorp | Hilltop Holdings vs. First Financial Northwest | Hilltop Holdings vs. First Northwest Bancorp | Hilltop Holdings vs. First Capital |
| United Community vs. ServisFirst Bancshares | United Community vs. Home BancShares | United Community vs. CNB Financial | United Community vs. Univest Pennsylvania |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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