Correlation Between Webster Financial and Prologis
Can any of the company-specific risk be diversified away by investing in both Webster Financial and Prologis 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 Prologis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Webster Financial and Prologis, you can compare the effects of market volatilities on Webster Financial and Prologis 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 Prologis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Webster Financial and Prologis.
Diversification Opportunities for Webster Financial and Prologis
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Webster and Prologis is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Webster Financial and Prologis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prologis 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 Prologis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prologis has no effect on the direction of Webster Financial i.e., Webster Financial and Prologis go up and down completely randomly.
Pair Corralation between Webster Financial and Prologis
Assuming the 90 days horizon Webster Financial is expected to generate 1.48 times more return on investment than Prologis. However, Webster Financial is 1.48 times more volatile than Prologis. It trades about 0.07 of its potential returns per unit of risk. Prologis is currently generating about 0.01 per unit of risk. If you would invest 3,644 in Webster Financial on September 12, 2024 and sell it today you would earn a total of 2,006 from holding Webster Financial or generate 55.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.7% |
| Values | Daily Returns |
Webster Financial vs. Prologis
Performance |
| Timeline |
| Webster Financial |
| Prologis |
Webster Financial and Prologis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Webster Financial and Prologis
The main advantage of trading using opposite Webster Financial and Prologis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Webster Financial position performs unexpectedly, Prologis 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 Prologis will offset losses from the drop in Prologis' 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 |
| Prologis vs. OAKTRSPECLENDNEW | Prologis vs. Commonwealth Bank of | Prologis vs. Webster Financial | Prologis vs. Autohome ADR |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |