Correlation Between International Bancshares and Fulton Financial
Can any of the company-specific risk be diversified away by investing in both International Bancshares and Fulton 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 International Bancshares and Fulton Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Bancshares and Fulton Financial, you can compare the effects of market volatilities on International Bancshares and Fulton 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 International Bancshares with a short position of Fulton Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Bancshares and Fulton Financial.
Diversification Opportunities for International Bancshares and Fulton Financial
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between International and Fulton is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding International Bancshares and Fulton Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulton Financial and International Bancshares 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 International Bancshares are associated (or correlated) with Fulton Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulton Financial has no effect on the direction of International Bancshares i.e., International Bancshares and Fulton Financial go up and down completely randomly.
Pair Corralation between International Bancshares and Fulton Financial
Given the investment horizon of 90 days International Bancshares is expected to generate 0.88 times more return on investment than Fulton Financial. However, International Bancshares is 1.14 times less risky than Fulton Financial. It trades about 0.06 of its potential returns per unit of risk. Fulton Financial is currently generating about 0.04 per unit of risk. If you would invest 4,333 in International Bancshares on September 12, 2024 and sell it today you would earn a total of 2,717 from holding International Bancshares or generate 62.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Bancshares vs. Fulton Financial
Performance |
| Timeline |
| International Bancshares |
| Fulton Financial |
International Bancshares and Fulton Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Bancshares and Fulton Financial
The main advantage of trading using opposite International Bancshares and Fulton Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Bancshares position performs unexpectedly, Fulton 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 Fulton Financial will offset losses from the drop in Fulton Financial's long position.| International Bancshares vs. JPMorgan Chase Co | International Bancshares vs. Citigroup | International Bancshares vs. Wells Fargo | International Bancshares vs. Toronto Dominion Bank |
| Fulton Financial vs. First Commonwealth Financial | Fulton Financial vs. Heritage Commerce Corp | Fulton Financial vs. Northwest Bancshares | Fulton Financial vs. First United |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |