Correlation Between WesBanco and Associated Banc
Can any of the company-specific risk be diversified away by investing in both WesBanco and Associated Banc 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 WesBanco and Associated Banc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WesBanco and Associated Banc Corp, you can compare the effects of market volatilities on WesBanco and Associated Banc 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 WesBanco with a short position of Associated Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of WesBanco and Associated Banc.
Diversification Opportunities for WesBanco and Associated Banc
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WesBanco and Associated is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding WesBanco and Associated Banc Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Banc Corp and WesBanco 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 WesBanco are associated (or correlated) with Associated Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Banc Corp has no effect on the direction of WesBanco i.e., WesBanco and Associated Banc go up and down completely randomly.
Pair Corralation between WesBanco and Associated Banc
Assuming the 90 days horizon WesBanco is expected to generate 0.91 times more return on investment than Associated Banc. However, WesBanco is 1.1 times less risky than Associated Banc. It trades about 0.03 of its potential returns per unit of risk. Associated Banc Corp is currently generating about 0.02 per unit of risk. If you would invest 2,195 in WesBanco on August 30, 2024 and sell it today you would earn a total of 319.00 from holding WesBanco or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WesBanco vs. Associated Banc Corp
Performance |
| Timeline |
| WesBanco |
| Associated Banc Corp |
WesBanco and Associated Banc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WesBanco and Associated Banc
The main advantage of trading using opposite WesBanco and Associated Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WesBanco position performs unexpectedly, Associated Banc 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 Associated Banc will offset losses from the drop in Associated Banc's long position.| WesBanco vs. Capital One Financial | WesBanco vs. Capital One Financial | WesBanco vs. Bank of America | WesBanco vs. KeyCorp |
| Associated Banc vs. Truist Financial | Associated Banc vs. MetLife Preferred Stock | Associated Banc vs. US Bancorp |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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