Correlation Between Triumph Financial and FinecoBank Banca
Can any of the company-specific risk be diversified away by investing in both Triumph Financial and FinecoBank Banca 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 Triumph Financial and FinecoBank Banca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triumph Financial and FinecoBank Banca Fineco, you can compare the effects of market volatilities on Triumph Financial and FinecoBank Banca 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 Triumph Financial with a short position of FinecoBank Banca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triumph Financial and FinecoBank Banca.
Diversification Opportunities for Triumph Financial and FinecoBank Banca
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Triumph and FinecoBank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Triumph Financial and FinecoBank Banca Fineco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FinecoBank Banca Fineco and Triumph 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 Triumph Financial are associated (or correlated) with FinecoBank Banca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FinecoBank Banca Fineco has no effect on the direction of Triumph Financial i.e., Triumph Financial and FinecoBank Banca go up and down completely randomly.
Pair Corralation between Triumph Financial and FinecoBank Banca
If you would invest 8,837 in Triumph Financial on September 1, 2024 and sell it today you would earn a total of 1,872 from holding Triumph Financial or generate 21.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Triumph Financial vs. FinecoBank Banca Fineco
Performance |
| Timeline |
| Triumph Financial |
| FinecoBank Banca Fineco |
Triumph Financial and FinecoBank Banca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triumph Financial and FinecoBank Banca
The main advantage of trading using opposite Triumph Financial and FinecoBank Banca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triumph Financial position performs unexpectedly, FinecoBank Banca 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 FinecoBank Banca will offset losses from the drop in FinecoBank Banca's long position.| Triumph Financial vs. First Capital | Triumph Financial vs. Finward Bancorp | Triumph Financial vs. Community West Bancshares | Triumph Financial vs. QCR Holdings |
| FinecoBank Banca vs. KeyCorp | FinecoBank Banca vs. AMMB Holdings Berhad | FinecoBank Banca vs. Triumph 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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