Correlation Between Truist Financial and WCF Bancorp
Can any of the company-specific risk be diversified away by investing in both Truist Financial and WCF Bancorp 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 Truist Financial and WCF Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truist Financial and WCF Bancorp, you can compare the effects of market volatilities on Truist Financial and WCF Bancorp 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 Truist Financial with a short position of WCF Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truist Financial and WCF Bancorp.
Diversification Opportunities for Truist Financial and WCF Bancorp
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Truist and WCF is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Truist Financial and WCF Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WCF Bancorp and Truist 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 Truist Financial are associated (or correlated) with WCF Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WCF Bancorp has no effect on the direction of Truist Financial i.e., Truist Financial and WCF Bancorp go up and down completely randomly.
Pair Corralation between Truist Financial and WCF Bancorp
If you would invest 805.00 in WCF Bancorp on August 25, 2024 and sell it today you would earn a total of 0.00 from holding WCF Bancorp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Truist Financial vs. WCF Bancorp
Performance |
| Timeline |
| Truist Financial |
| WCF Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Truist Financial and WCF Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truist Financial and WCF Bancorp
The main advantage of trading using opposite Truist Financial and WCF Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truist Financial position performs unexpectedly, WCF Bancorp 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 WCF Bancorp will offset losses from the drop in WCF Bancorp's long position.| Truist Financial vs. Truist Financial | Truist Financial vs. Truist Financial | Truist Financial vs. US Bancorp | Truist Financial vs. MetLife Preferred Stock |
| WCF Bancorp vs. CCSB Financial Corp | WCF Bancorp vs. Delhi Bank Corp | WCF Bancorp vs. Bank of Utica | WCF Bancorp vs. First Community Financial |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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