Correlation Between Regions Financial and Community Investors
Can any of the company-specific risk be diversified away by investing in both Regions Financial and Community Investors 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 Regions Financial and Community Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regions Financial and Community Investors Bancorp, you can compare the effects of market volatilities on Regions Financial and Community Investors 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 Regions Financial with a short position of Community Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and Community Investors.
Diversification Opportunities for Regions Financial and Community Investors
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Regions and Community is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and Community Investors Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Community Investors and Regions Financial 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 Regions Financial are associated (or correlated) with Community Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Community Investors has no effect on the direction of Regions Financial i.e., Regions Financial and Community Investors go up and down completely randomly.
Pair Corralation between Regions Financial and Community Investors
If you would invest 1,742 in Regions Financial on August 31, 2024 and sell it today you would earn a total of 984.00 from holding Regions Financial or generate 56.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
Regions Financial vs. Community Investors Bancorp
Performance |
| Timeline |
| Regions Financial |
| Community Investors |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Regions Financial and Community Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regions Financial and Community Investors
The main advantage of trading using opposite Regions Financial and Community Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, Community Investors 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 Community Investors will offset losses from the drop in Community Investors' long position.| Regions Financial vs. KeyCorp | Regions Financial vs. Fifth Third Bancorp | Regions Financial vs. Zions Bancorporation | Regions Financial vs. Huntington Bancshares Incorporated |
| Community Investors vs. CIB Marine Bancshares | Community Investors vs. United Bancorporation of | Community Investors vs. U I Financial | Community Investors vs. CoastalSouth Bancshares |
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.
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