Correlation Between Suntrust Home and Union Bank
Can any of the company-specific risk be diversified away by investing in both Suntrust Home and Union 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 Suntrust Home and Union Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suntrust Home Developers and Union Bank of, you can compare the effects of market volatilities on Suntrust Home and Union 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 Suntrust Home with a short position of Union Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suntrust Home and Union Bank.
Diversification Opportunities for Suntrust Home and Union Bank
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suntrust and Union is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Suntrust Home Developers and Union Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Bank and Suntrust Home 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 Suntrust Home Developers are associated (or correlated) with Union Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Bank has no effect on the direction of Suntrust Home i.e., Suntrust Home and Union Bank go up and down completely randomly.
Pair Corralation between Suntrust Home and Union Bank
Assuming the 90 days trading horizon Suntrust Home Developers is expected to generate 1.03 times more return on investment than Union Bank. However, Suntrust Home is 1.03 times more volatile than Union Bank of. It trades about -0.17 of its potential returns per unit of risk. Union Bank of is currently generating about -0.21 per unit of risk. If you would invest 91.00 in Suntrust Home Developers on August 25, 2024 and sell it today you would lose (5.00) from holding Suntrust Home Developers or give up 5.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
Suntrust Home Developers vs. Union Bank of
Performance |
| Timeline |
| Suntrust Home Developers |
| Union Bank |
Suntrust Home and Union Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suntrust Home and Union Bank
The main advantage of trading using opposite Suntrust Home and Union Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suntrust Home position performs unexpectedly, Union 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 Union Bank will offset losses from the drop in Union Bank's long position.| Suntrust Home vs. Allhome Corp | Suntrust Home vs. Jollibee Foods Corp | Suntrust Home vs. LFM Properties Corp | Suntrust Home vs. PXP Energy Corp |
| Union Bank vs. Premiere Entertainment | Union Bank vs. Philex Mining Corp | Union Bank vs. Apex Mining Co | Union Bank vs. Lepanto Consolidated Mining |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Correlations Find global opportunities by holding instruments from different markets |