Correlation Between Signature Bank and Alpha Bank
Can any of the company-specific risk be diversified away by investing in both Signature Bank and Alpha Bank 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 Signature Bank and Alpha Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signature Bank and Alpha Bank SA, you can compare the effects of market volatilities on Signature Bank and Alpha Bank 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 Signature Bank with a short position of Alpha Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signature Bank and Alpha Bank.
Diversification Opportunities for Signature Bank and Alpha Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Signature and Alpha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Signature Bank and Alpha Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Bank SA and Signature Bank 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 Signature Bank are associated (or correlated) with Alpha Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Bank SA has no effect on the direction of Signature Bank i.e., Signature Bank and Alpha Bank go up and down completely randomly.
Pair Corralation between Signature Bank and Alpha Bank
If you would invest 41.00 in Alpha Bank SA on November 27, 2024 and sell it today you would earn a total of 3.00 from holding Alpha Bank SA or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Signature Bank vs. Alpha Bank SA
Performance |
| Timeline |
| Signature Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Alpha Bank SA |
Signature Bank and Alpha Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signature Bank and Alpha Bank
The main advantage of trading using opposite Signature Bank and Alpha Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signature Bank position performs unexpectedly, Alpha Bank 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 Alpha Bank will offset losses from the drop in Alpha Bank's long position.| Signature Bank vs. Zions Bancorporation | Signature Bank vs. KeyCorp | Signature Bank vs. Comerica | Signature Bank vs. First Horizon National |
| Alpha Bank vs. National Bank of | Alpha Bank vs. Piraeus Bank SA | Alpha Bank vs. Eurobank Ergasias SA | Alpha Bank vs. First Citizens 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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