Correlation Between Webster Financial and Maplebear Common
Can any of the company-specific risk be diversified away by investing in both Webster Financial and Maplebear Common 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 Webster Financial and Maplebear Common into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Webster Financial and Maplebear Common Stock, you can compare the effects of market volatilities on Webster Financial and Maplebear Common 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 Webster Financial with a short position of Maplebear Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Webster Financial and Maplebear Common.
Diversification Opportunities for Webster Financial and Maplebear Common
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Webster and Maplebear is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Webster Financial and Maplebear Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear Common Stock and Webster 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 Webster Financial are associated (or correlated) with Maplebear Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear Common Stock has no effect on the direction of Webster Financial i.e., Webster Financial and Maplebear Common go up and down completely randomly.
Pair Corralation between Webster Financial and Maplebear Common
Assuming the 90 days trading horizon Webster Financial is expected to generate 2.56 times less return on investment than Maplebear Common. But when comparing it to its historical volatility, Webster Financial is 1.51 times less risky than Maplebear Common. It trades about 0.03 of its potential returns per unit of risk. Maplebear Common Stock is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,370 in Maplebear Common Stock on August 26, 2024 and sell it today you would earn a total of 952.00 from holding Maplebear Common Stock or generate 28.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 60.36% |
| Values | Daily Returns |
Webster Financial vs. Maplebear Common Stock
Performance |
| Timeline |
| Webster Financial |
| Maplebear Common Stock |
Webster Financial and Maplebear Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Webster Financial and Maplebear Common
The main advantage of trading using opposite Webster Financial and Maplebear Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Webster Financial position performs unexpectedly, Maplebear Common 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 Maplebear Common will offset losses from the drop in Maplebear Common's long position.| Webster Financial vs. KeyCorp | Webster Financial vs. Associated Banc Corp | Webster Financial vs. New York Community | Webster Financial vs. Synovus Financial Corp |
| Maplebear Common vs. Natural Alternatives International | Maplebear Common vs. Marine Products | Maplebear Common vs. Playa Hotels Resorts | Maplebear Common vs. Mattel Inc |
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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