Correlation Between United Community and Hilltop Holdings
Can any of the company-specific risk be diversified away by investing in both United Community and Hilltop Holdings 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 United Community and Hilltop Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United Community Banks and Hilltop Holdings, you can compare the effects of market volatilities on United Community and Hilltop Holdings 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 United Community with a short position of Hilltop Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Community and Hilltop Holdings.
Diversification Opportunities for United Community and Hilltop Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and Hilltop is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United Community Banks and Hilltop Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hilltop Holdings and United Community 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 United Community Banks are associated (or correlated) with Hilltop Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hilltop Holdings has no effect on the direction of United Community i.e., United Community and Hilltop Holdings go up and down completely randomly.
Pair Corralation between United Community and Hilltop Holdings
If you would invest 3,251 in Hilltop Holdings on November 9, 2024 and sell it today you would earn a total of 26.00 from holding Hilltop Holdings or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
United Community Banks vs. Hilltop Holdings
Performance |
| Timeline |
| United Community Banks |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Hilltop Holdings |
United Community and Hilltop Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Community and Hilltop Holdings
The main advantage of trading using opposite United Community and Hilltop Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Community position performs unexpectedly, Hilltop Holdings 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 Hilltop Holdings will offset losses from the drop in Hilltop Holdings' long position.| United Community vs. ServisFirst Bancshares | United Community vs. Home BancShares | United Community vs. CNB Financial | United Community vs. Univest Pennsylvania |
| Hilltop Holdings vs. Home Federal Bancorp | Hilltop Holdings vs. First Financial Northwest | Hilltop Holdings vs. First Northwest Bancorp | Hilltop Holdings vs. First Capital |
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.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |