Correlation Between WCF Bancorp and CullenFrost Bankers
Can any of the company-specific risk be diversified away by investing in both WCF Bancorp and CullenFrost Bankers 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 WCF Bancorp and CullenFrost Bankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WCF Bancorp and CullenFrost Bankers, you can compare the effects of market volatilities on WCF Bancorp and CullenFrost Bankers 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 WCF Bancorp with a short position of CullenFrost Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of WCF Bancorp and CullenFrost Bankers.
Diversification Opportunities for WCF Bancorp and CullenFrost Bankers
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WCF and CullenFrost is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding WCF Bancorp and CullenFrost Bankers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CullenFrost Bankers and WCF 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 WCF Bancorp are associated (or correlated) with CullenFrost Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CullenFrost Bankers has no effect on the direction of WCF Bancorp i.e., WCF Bancorp and CullenFrost Bankers go up and down completely randomly.
Pair Corralation between WCF Bancorp and CullenFrost Bankers
If you would invest 1,789 in CullenFrost Bankers on September 1, 2024 and sell it today you would earn a total of 151.00 from holding CullenFrost Bankers or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
WCF Bancorp vs. CullenFrost Bankers
Performance |
| Timeline |
| WCF Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CullenFrost Bankers |
WCF Bancorp and CullenFrost Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WCF Bancorp and CullenFrost Bankers
The main advantage of trading using opposite WCF Bancorp and CullenFrost Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WCF Bancorp position performs unexpectedly, CullenFrost Bankers 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 CullenFrost Bankers will offset losses from the drop in CullenFrost Bankers' long position.| WCF Bancorp vs. CCSB Financial Corp | WCF Bancorp vs. Delhi Bank Corp | WCF Bancorp vs. Bank of Utica | WCF Bancorp vs. First Community Financial |
| CullenFrost Bankers vs. Fifth Third Bancorp | CullenFrost Bankers vs. Fifth Third Bancorp | CullenFrost Bankers vs. First Citizens BancShares | CullenFrost Bankers vs. Huntington Bancshares Incorporated |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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