Correlation Between Truist Financial and Western New
Can any of the company-specific risk be diversified away by investing in both Truist Financial and Western New 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 Western New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Truist Financial and Western New England, you can compare the effects of market volatilities on Truist Financial and Western New 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 Western New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Truist Financial and Western New.
Diversification Opportunities for Truist Financial and Western New
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Truist and Western is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Truist Financial and Western New England in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western New England 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 Western New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western New England has no effect on the direction of Truist Financial i.e., Truist Financial and Western New go up and down completely randomly.
Pair Corralation between Truist Financial and Western New
Assuming the 90 days trading horizon Truist Financial is expected to generate 3.3 times less return on investment than Western New. But when comparing it to its historical volatility, Truist Financial is 1.62 times less risky than Western New. It trades about 0.02 of its potential returns per unit of risk. Western New England is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 719.00 in Western New England on December 4, 2024 and sell it today you would earn a total of 228.00 from holding Western New England or generate 31.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Truist Financial vs. Western New England
Performance |
| Timeline |
| Truist Financial |
| Western New England |
Truist Financial and Western New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Truist Financial and Western New
The main advantage of trading using opposite Truist Financial and Western New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Truist Financial position performs unexpectedly, Western New 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 New will offset losses from the drop in Western New's long position.| Truist Financial vs. Truist Financial | ||
| Truist Financial vs. Truist Financial | ||
| Truist Financial vs. US Bancorp | ||
| Truist Financial vs. MetLife Preferred Stock |
| Western New vs. IF Bancorp | ||
| Western New vs. Shore Bancshares | ||
| Western New vs. Colony Bankcorp | ||
| Western New vs. Investar Holding Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| 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 | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |