Correlation Between SVB Financial and Western Union
Can any of the company-specific risk be diversified away by investing in both SVB Financial and Western Union 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 SVB Financial and Western Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVB Financial Group and The Western Union, you can compare the effects of market volatilities on SVB Financial and Western Union 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 SVB Financial with a short position of Western Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB Financial and Western Union.
Diversification Opportunities for SVB Financial and Western Union
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVB and Western is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVB Financial Group and The Western Union in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Union and SVB 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 SVB Financial Group are associated (or correlated) with Western Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Union has no effect on the direction of SVB Financial i.e., SVB Financial and Western Union go up and down completely randomly.
Pair Corralation between SVB Financial and Western Union
If you would invest (100.00) in The Western Union on September 4, 2024 and sell it today you would earn a total of 100.00 from holding The Western Union or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SVB Financial Group vs. The Western Union
Performance |
| Timeline |
| SVB Financial Group |
| Western Union |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SVB Financial and Western Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVB Financial and Western Union
The main advantage of trading using opposite SVB Financial and Western Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB Financial position performs unexpectedly, Western Union 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 Western Union will offset losses from the drop in Western Union's long position.| SVB Financial vs. Ita Unibanco Holding | SVB Financial vs. Ita Unibanco Holding | SVB Financial vs. Deutsche Bank Aktiengesellschaft | SVB Financial vs. Banco Bradesco SA |
| Western Union vs. Warner Music Group | Western Union vs. Bio Techne | Western Union vs. BIONTECH SE DRN | Western Union vs. Palantir Technologies |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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