Correlation Between Regions Financial and United Bancshares
Can any of the company-specific risk be diversified away by investing in both Regions Financial and United Bancshares 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 United Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regions Financial and United Bancshares, you can compare the effects of market volatilities on Regions Financial and United Bancshares 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 United Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and United Bancshares.
Diversification Opportunities for Regions Financial and United Bancshares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regions and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and United Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Bancshares 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 United Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Bancshares has no effect on the direction of Regions Financial i.e., Regions Financial and United Bancshares go up and down completely randomly.
Pair Corralation between Regions Financial and United Bancshares
If you would invest 2,387 in Regions Financial on September 1, 2024 and sell it today you would earn a total of 339.00 from holding Regions Financial or generate 14.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Regions Financial vs. United Bancshares
Performance |
| Timeline |
| Regions Financial |
| United Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Regions Financial and United Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regions Financial and United Bancshares
The main advantage of trading using opposite Regions Financial and United Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, United Bancshares 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 Bancshares will offset losses from the drop in United Bancshares' long position.| Regions Financial vs. KeyCorp | Regions Financial vs. Fifth Third Bancorp | Regions Financial vs. Zions Bancorporation | Regions Financial vs. Huntington Bancshares Incorporated |
| United Bancshares vs. CCSB Financial Corp | United Bancshares vs. Delhi Bank Corp | United Bancshares vs. Bank of Utica | United Bancshares vs. First Community Financial |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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