Correlation Between FIRST REP and Wells Fargo
Can any of the company-specific risk be diversified away by investing in both FIRST REP and Wells Fargo 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 FIRST REP and Wells Fargo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST REP BK and Wells Fargo, you can compare the effects of market volatilities on FIRST REP and Wells Fargo 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 FIRST REP with a short position of Wells Fargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST REP and Wells Fargo.
Diversification Opportunities for FIRST REP and Wells Fargo
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FIRST and Wells is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding FIRST REP BK and Wells Fargo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wells Fargo and FIRST REP 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 FIRST REP BK are associated (or correlated) with Wells Fargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wells Fargo has no effect on the direction of FIRST REP i.e., FIRST REP and Wells Fargo go up and down completely randomly.
Pair Corralation between FIRST REP and Wells Fargo
If you would invest 3,881 in Wells Fargo on January 26, 2024 and sell it today you would earn a total of 2,112 from holding Wells Fargo or generate 54.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 0.81% |
Values | Daily Returns |
FIRST REP BK vs. Wells Fargo
Performance |
Timeline |
FIRST REP BK |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Wells Fargo |
FIRST REP and Wells Fargo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with FIRST REP and Wells Fargo
The main advantage of trading using opposite FIRST REP and Wells Fargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST REP position performs unexpectedly, Wells Fargo 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 Wells Fargo will offset losses from the drop in Wells Fargo's long position.FIRST REP vs. Zions Bancorporation | FIRST REP vs. KeyCorp | FIRST REP vs. Comerica | FIRST REP vs. First Horizon National |
Wells Fargo vs. Aquagold International | Wells Fargo vs. Thrivent High Yield | Wells Fargo vs. Morningstar Unconstrained Allocation | Wells Fargo vs. Via Renewables |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing |