Correlation Between US Bancorp and Société Générale
Can any of the company-specific risk be diversified away by investing in both US Bancorp and Société Générale 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 US Bancorp and Société Générale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Bancorp and Socit Gnrale Socit, you can compare the effects of market volatilities on US Bancorp and Société Générale 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 US Bancorp with a short position of Société Générale. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Bancorp and Société Générale.
Diversification Opportunities for US Bancorp and Société Générale
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USB-PH and Société is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Bancorp and Socit Gnrale Socit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Socit Gnrale Socit and US Bancorp 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 US Bancorp are associated (or correlated) with Société Générale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Socit Gnrale Socit has no effect on the direction of US Bancorp i.e., US Bancorp and Société Générale go up and down completely randomly.
Pair Corralation between US Bancorp and Société Générale
If you would invest 1,564 in US Bancorp on September 2, 2024 and sell it today you would earn a total of 744.00 from holding US Bancorp or generate 47.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
US Bancorp vs. Socit Gnrale Socit
Performance |
| Timeline |
| US Bancorp |
| Socit Gnrale Socit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
US Bancorp and Société Générale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Bancorp and Société Générale
The main advantage of trading using opposite US Bancorp and Société Générale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Bancorp position performs unexpectedly, Société Générale 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 Société Générale will offset losses from the drop in Société Générale's long position.| US Bancorp vs. KeyCorp | US Bancorp vs. KeyCorp | US Bancorp vs. Fifth Third Bancorp | US Bancorp vs. Citizens Financial Group |
| Société Générale vs. Banco Bradesco SA | Société Générale vs. Itau Unibanco Banco | Société Générale vs. Lloyds Banking Group | Société Générale vs. Deutsche Bank AG |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |