Correlation Between ST Bancorp and Truist Financial
Can any of the company-specific risk be diversified away by investing in both ST Bancorp and Truist 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 ST Bancorp and Truist Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ST Bancorp and Truist Financial, you can compare the effects of market volatilities on ST Bancorp and Truist 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 ST Bancorp with a short position of Truist Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of ST Bancorp and Truist Financial.
Diversification Opportunities for ST Bancorp and Truist Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STBA and Truist is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ST Bancorp and Truist Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Truist Financial and ST Bancorp 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 ST Bancorp are associated (or correlated) with Truist Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Truist Financial has no effect on the direction of ST Bancorp i.e., ST Bancorp and Truist Financial go up and down completely randomly.
Pair Corralation between ST Bancorp and Truist Financial
If you would invest 3,074 in ST Bancorp on January 24, 2024 and sell it today you would earn a total of 5.00 from holding ST Bancorp or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
ST Bancorp vs. Truist Financial
Performance |
| Timeline |
| ST Bancorp |
| Truist Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ST Bancorp and Truist Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ST Bancorp and Truist Financial
The main advantage of trading using opposite ST Bancorp and Truist Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ST Bancorp position performs unexpectedly, Truist 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 Truist Financial will offset losses from the drop in Truist Financial's long position.| ST Bancorp vs. CrossFirst Bankshares | ST Bancorp vs. Enterprise Financial Services | ST Bancorp vs. The First Bancshares | ST Bancorp vs. First Bancorp |
| Truist Financial vs. BBB Foods | Truist Financial vs. Park City Group | Truist Financial vs. Data3 Limited | Truist Financial vs. Marfrig Global Foods |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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