Correlation Between Signature Bank and SVB Financial
Can any of the company-specific risk be diversified away by investing in both Signature Bank and SVB Financial 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 SVB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Signature Bank and SVB Financial Group, you can compare the effects of market volatilities on Signature Bank and SVB Financial 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 SVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signature Bank and SVB Financial.
Diversification Opportunities for Signature Bank and SVB Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Signature and SVB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Signature Bank and SVB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB Financial Group 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 SVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB Financial Group has no effect on the direction of Signature Bank i.e., Signature Bank and SVB Financial go up and down completely randomly.
Pair Corralation between Signature Bank and SVB Financial
If you would invest (100.00) in SVB Financial Group on September 1, 2024 and sell it today you would earn a total of 100.00 from holding SVB Financial Group 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 |
Signature Bank vs. SVB Financial Group
Performance |
| Timeline |
| Signature Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SVB Financial Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Signature Bank and SVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Signature Bank and SVB Financial
The main advantage of trading using opposite Signature Bank and SVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signature Bank position performs unexpectedly, SVB Financial 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 SVB Financial will offset losses from the drop in SVB Financial's long position.| Signature Bank vs. Zions Bancorporation | Signature Bank vs. KeyCorp | Signature Bank vs. Comerica | Signature Bank vs. First Horizon National |
| SVB Financial vs. Bank of America | SVB Financial vs. Black Hills | SVB Financial vs. Rocky Brands | SVB Financial vs. Timken Company |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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