Correlation Between Cadence Bank and Caribbean Utilities
Can any of the company-specific risk be diversified away by investing in both Cadence Bank and Caribbean Utilities 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 Cadence Bank and Caribbean Utilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadence Bank and Caribbean Utilities, you can compare the effects of market volatilities on Cadence Bank and Caribbean Utilities 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 Cadence Bank with a short position of Caribbean Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadence Bank and Caribbean Utilities.
Diversification Opportunities for Cadence Bank and Caribbean Utilities
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cadence and Caribbean is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Cadence Bank and Caribbean Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caribbean Utilities and Cadence Bank 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 Cadence Bank are associated (or correlated) with Caribbean Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caribbean Utilities has no effect on the direction of Cadence Bank i.e., Cadence Bank and Caribbean Utilities go up and down completely randomly.
Pair Corralation between Cadence Bank and Caribbean Utilities
Assuming the 90 days trading horizon Cadence Bank is expected to generate 0.46 times more return on investment than Caribbean Utilities. However, Cadence Bank is 2.19 times less risky than Caribbean Utilities. It trades about 0.05 of its potential returns per unit of risk. Caribbean Utilities is currently generating about -0.01 per unit of risk. If you would invest 2,118 in Cadence Bank on September 5, 2025 and sell it today you would earn a total of 43.00 from holding Cadence Bank or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Cadence Bank vs. Caribbean Utilities
Performance |
| Timeline |
| Cadence Bank |
| Caribbean Utilities |
Cadence Bank and Caribbean Utilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cadence Bank and Caribbean Utilities
The main advantage of trading using opposite Cadence Bank and Caribbean Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadence Bank position performs unexpectedly, Caribbean Utilities 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 Caribbean Utilities will offset losses from the drop in Caribbean Utilities' long position.| Cadence Bank vs. Origin Investment Corp | Cadence Bank vs. Wi Fi Wireless ltd | Cadence Bank vs. Piedmont Office Realty | Cadence Bank vs. Infrastrutture Wireless Italiane |
| Caribbean Utilities vs. Interplay Entertainment Corp | Caribbean Utilities vs. United Utilities Group | Caribbean Utilities vs. Travel Leisure Co | Caribbean Utilities vs. Retail Food Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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