Correlation Between US Bancorp and Popular
Can any of the company-specific risk be diversified away by investing in both US Bancorp and Popular 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 US Bancorp and Popular into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Bancorp and Popular, you can compare the effects of market volatilities on US Bancorp and Popular 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 US Bancorp with a short position of Popular. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Bancorp and Popular.
Diversification Opportunities for US Bancorp and Popular
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between USB-PP and Popular is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding US Bancorp and Popular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Popular and US 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 US Bancorp are associated (or correlated) with Popular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Popular has no effect on the direction of US Bancorp i.e., US Bancorp and Popular go up and down completely randomly.
Pair Corralation between US Bancorp and Popular
If you would invest 1,938 in US Bancorp on February 6, 2024 and sell it today you would earn a total of 452.00 from holding US Bancorp or generate 23.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
US Bancorp vs. Popular
Performance |
| Timeline |
| US Bancorp |
| Popular |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
US Bancorp and Popular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Bancorp and Popular
The main advantage of trading using opposite US Bancorp and Popular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Bancorp position performs unexpectedly, Popular 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 Popular will offset losses from the drop in Popular's long position.| US Bancorp vs. Citizens Financial Group | US Bancorp vs. Capital One Financial | US Bancorp vs. Capital One Financial | US Bancorp vs. Bank of America |
| Popular vs. Encore Capital Group | Popular vs. Willscot Mobile Mini | Popular vs. Siriuspoint | Popular vs. Glacier 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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