Correlation Between WesBanco and United Security
Can any of the company-specific risk be diversified away by investing in both WesBanco and United Security 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 United Security into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WesBanco and United Security Bancshares, you can compare the effects of market volatilities on WesBanco and United Security 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 United Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of WesBanco and United Security.
Diversification Opportunities for WesBanco and United Security
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between WesBanco and United is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding WesBanco and United Security Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Security Banc 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 United Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Security Banc has no effect on the direction of WesBanco i.e., WesBanco and United Security go up and down completely randomly.
Pair Corralation between WesBanco and United Security
Assuming the 90 days horizon WesBanco is expected to generate 0.1 times more return on investment than United Security. However, WesBanco is 9.82 times less risky than United Security. It trades about -0.09 of its potential returns per unit of risk. United Security Bancshares is currently generating about -0.18 per unit of risk. If you would invest 2,525 in WesBanco on January 18, 2025 and sell it today you would lose (15.00) from holding WesBanco or give up 0.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WesBanco vs. United Security Bancshares
Performance |
| Timeline |
| WesBanco |
| United Security Banc |
WesBanco and United Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WesBanco and United Security
The main advantage of trading using opposite WesBanco and United Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WesBanco position performs unexpectedly, United Security 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 United Security will offset losses from the drop in United Security's long position.| WesBanco vs. NanoTech Gaming | WesBanco vs. International Game Technology | WesBanco vs. Simon Property Group | WesBanco vs. Coupang LLC |
| United Security vs. Home Federal Bancorp | United Security vs. Lake Shore Bancorp | United Security vs. Community West Bancshares | United Security vs. First Northwest 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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