Correlation Between Cadence Bank and Solvay Bank
Can any of the company-specific risk be diversified away by investing in both Cadence Bank and Solvay Bank 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 Solvay Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cadence Bank and Solvay Bank Corp, you can compare the effects of market volatilities on Cadence Bank and Solvay Bank 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 Solvay Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cadence Bank and Solvay Bank.
Diversification Opportunities for Cadence Bank and Solvay Bank
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cadence and Solvay is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Cadence Bank and Solvay Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solvay Bank Corp 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 Solvay Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solvay Bank Corp has no effect on the direction of Cadence Bank i.e., Cadence Bank and Solvay Bank go up and down completely randomly.
Pair Corralation between Cadence Bank and Solvay Bank
Assuming the 90 days trading horizon Cadence Bank is expected to generate 0.57 times more return on investment than Solvay Bank. However, Cadence Bank is 1.74 times less risky than Solvay Bank. It trades about 0.04 of its potential returns per unit of risk. Solvay Bank Corp is currently generating about 0.0 per unit of risk. If you would invest 2,097 in Cadence Bank on August 24, 2025 and sell it today you would earn a total of 40.00 from holding Cadence Bank or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cadence Bank vs. Solvay Bank Corp
Performance |
| Timeline |
| Cadence Bank |
| Solvay Bank Corp |
Cadence Bank and Solvay Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cadence Bank and Solvay Bank
The main advantage of trading using opposite Cadence Bank and Solvay Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cadence Bank position performs unexpectedly, Solvay Bank 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 Solvay Bank will offset losses from the drop in Solvay Bank's long position.| Cadence Bank vs. Texas Capital Bancshares | Cadence Bank vs. Webster Financial | Cadence Bank vs. ServisFirst Bancshares | Cadence Bank vs. International Bancshares |
| Solvay Bank vs. Oregon Pacific Bancorp | Solvay Bank vs. River Valley Community | Solvay Bank vs. Oak Ridge Financial | Solvay Bank vs. Southeastern Banking Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |