Correlation Between Webster Financial and BRITVIC
Can any of the company-specific risk be diversified away by investing in both Webster Financial and BRITVIC 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 BRITVIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Webster Financial and BRITVIC, you can compare the effects of market volatilities on Webster Financial and BRITVIC 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 BRITVIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Webster Financial and BRITVIC.
Diversification Opportunities for Webster Financial and BRITVIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Webster and BRITVIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Webster Financial and BRITVIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRITVIC 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 BRITVIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRITVIC has no effect on the direction of Webster Financial i.e., Webster Financial and BRITVIC go up and down completely randomly.
Pair Corralation between Webster Financial and BRITVIC
If you would invest 3,781 in Webster Financial on September 14, 2024 and sell it today you would earn a total of 1,819 from holding Webster Financial or generate 48.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Webster Financial vs. BRITVIC
Performance |
| Timeline |
| Webster Financial |
| BRITVIC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Webster Financial and BRITVIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Webster Financial and BRITVIC
The main advantage of trading using opposite Webster Financial and BRITVIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Webster Financial position performs unexpectedly, BRITVIC 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 BRITVIC will offset losses from the drop in BRITVIC's long position.| Webster Financial vs. Fifth Third Bancorp | Webster Financial vs. Regions Financial | Webster Financial vs. Superior Plus Corp | Webster Financial vs. SIVERS SEMICONDUCTORS AB |
| BRITVIC vs. PKSHA TECHNOLOGY INC | BRITVIC vs. Microchip Technology Incorporated | BRITVIC vs. AGRICULTBK HADR25 YC | BRITVIC vs. Check Point Software |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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