Correlation Between Western Alliance and AMMB Holdings
Can any of the company-specific risk be diversified away by investing in both Western Alliance and AMMB 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 Western Alliance and AMMB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Alliance Bancorporation and AMMB Holdings Berhad, you can compare the effects of market volatilities on Western Alliance and AMMB 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 Western Alliance with a short position of AMMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Alliance and AMMB Holdings.
Diversification Opportunities for Western Alliance and AMMB Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and AMMB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Western Alliance Bancorp. and AMMB Holdings Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMMB Holdings Berhad and Western Alliance 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 Western Alliance Bancorporation are associated (or correlated) with AMMB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMMB Holdings Berhad has no effect on the direction of Western Alliance i.e., Western Alliance and AMMB Holdings go up and down completely randomly.
Pair Corralation between Western Alliance and AMMB Holdings
If you would invest 8,207 in Western Alliance Bancorporation on September 4, 2024 and sell it today you would earn a total of 1,112 from holding Western Alliance Bancorporation or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Western Alliance Bancorp. vs. AMMB Holdings Berhad
Performance |
| Timeline |
| Western Alliance Ban |
| AMMB Holdings Berhad |
Western Alliance and AMMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Alliance and AMMB Holdings
The main advantage of trading using opposite Western Alliance and AMMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Alliance position performs unexpectedly, AMMB 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 AMMB Holdings will offset losses from the drop in AMMB Holdings' long position.| Western Alliance vs. Zions Bancorporation | Western Alliance vs. KeyCorp | Western Alliance vs. First Horizon National | Western Alliance vs. Comerica |
| AMMB Holdings vs. Alpha Bank SA | AMMB Holdings vs. Deutsche Bank AG | AMMB Holdings vs. Western Alliance Bancorporation | AMMB Holdings vs. KBC Groep NV |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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