Correlation Between WesBanco and Heartland Financial
Can any of the company-specific risk be diversified away by investing in both WesBanco and Heartland Financial 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 Heartland Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WesBanco and Heartland Financial USA, you can compare the effects of market volatilities on WesBanco and Heartland Financial 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 Heartland Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of WesBanco and Heartland Financial.
Diversification Opportunities for WesBanco and Heartland Financial
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WesBanco and Heartland is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding WesBanco and Heartland Financial USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heartland Financial USA 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 Heartland Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heartland Financial USA has no effect on the direction of WesBanco i.e., WesBanco and Heartland Financial go up and down completely randomly.
Pair Corralation between WesBanco and Heartland Financial
Assuming the 90 days horizon WesBanco is expected to generate 0.89 times more return on investment than Heartland Financial. However, WesBanco is 1.13 times less risky than Heartland Financial. It trades about 0.29 of its potential returns per unit of risk. Heartland Financial USA is currently generating about -0.03 per unit of risk. If you would invest 2,516 in WesBanco on November 2, 2024 and sell it today you would earn a total of 43.00 from holding WesBanco or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WesBanco vs. Heartland Financial USA
Performance |
| Timeline |
| WesBanco |
| Heartland Financial USA |
WesBanco and Heartland Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WesBanco and Heartland Financial
The main advantage of trading using opposite WesBanco and Heartland Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WesBanco position performs unexpectedly, Heartland Financial 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 Heartland Financial will offset losses from the drop in Heartland Financial's long position.| WesBanco vs. Willamette Valley Vineyards | WesBanco vs. Oatly Group AB | WesBanco vs. Fomento Economico Mexicano | WesBanco vs. ScanSource |
| Heartland Financial vs. Wintrust Financial Corp | Heartland Financial vs. Pinnacle Financial Partners | Heartland Financial vs. WesBanco | Heartland Financial vs. OceanFirst Financial Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Correlations Find global opportunities by holding instruments from different markets |