Correlation Between Regions Financial and CORONGLRES CDIS/10/1
Can any of the company-specific risk be diversified away by investing in both Regions Financial and CORONGLRES CDIS/10/1 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 CORONGLRES CDIS/10/1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regions Financial and CORONGLRES CDIS101, you can compare the effects of market volatilities on Regions Financial and CORONGLRES CDIS/10/1 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 CORONGLRES CDIS/10/1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and CORONGLRES CDIS/10/1.
Diversification Opportunities for Regions Financial and CORONGLRES CDIS/10/1
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Regions and CORONGLRES is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and CORONGLRES CDIS101 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORONGLRES CDIS/10/1 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 CORONGLRES CDIS/10/1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORONGLRES CDIS/10/1 has no effect on the direction of Regions Financial i.e., Regions Financial and CORONGLRES CDIS/10/1 go up and down completely randomly.
Pair Corralation between Regions Financial and CORONGLRES CDIS/10/1
Assuming the 90 days horizon Regions Financial is expected to generate 0.66 times more return on investment than CORONGLRES CDIS/10/1. However, Regions Financial is 1.52 times less risky than CORONGLRES CDIS/10/1. It trades about 0.13 of its potential returns per unit of risk. CORONGLRES CDIS101 is currently generating about -0.07 per unit of risk. If you would invest 1,526 in Regions Financial on September 4, 2024 and sell it today you would earn a total of 1,074 from holding Regions Financial or generate 70.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Regions Financial vs. CORONGLRES CDIS101
Performance |
| Timeline |
| Regions Financial |
| CORONGLRES CDIS/10/1 |
Regions Financial and CORONGLRES CDIS/10/1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regions Financial and CORONGLRES CDIS/10/1
The main advantage of trading using opposite Regions Financial and CORONGLRES CDIS/10/1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, CORONGLRES CDIS/10/1 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 CORONGLRES CDIS/10/1 will offset losses from the drop in CORONGLRES CDIS/10/1's long position.| Regions Financial vs. US Bancorp | Regions Financial vs. The PNC Financial | Regions Financial vs. Fifth Third Bancorp |
| CORONGLRES CDIS/10/1 vs. AJ LUCAS GROUP | CORONGLRES CDIS/10/1 vs. Superior Plus Corp | CORONGLRES CDIS/10/1 vs. NMI Holdings | CORONGLRES CDIS/10/1 vs. Origin Agritech |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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