Correlation Between Grupo Financiero and Webster Financial
Can any of the company-specific risk be diversified away by investing in both Grupo Financiero and Webster 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 Grupo Financiero and Webster Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Financiero Galicia and Webster Financial, you can compare the effects of market volatilities on Grupo Financiero and Webster 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 Grupo Financiero with a short position of Webster Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Financiero and Webster Financial.
Diversification Opportunities for Grupo Financiero and Webster Financial
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grupo and Webster is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Financiero Galicia and Webster Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Webster Financial and Grupo Financiero 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 Grupo Financiero Galicia are associated (or correlated) with Webster Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Webster Financial has no effect on the direction of Grupo Financiero i.e., Grupo Financiero and Webster Financial go up and down completely randomly.
Pair Corralation between Grupo Financiero and Webster Financial
Given the investment horizon of 90 days Grupo Financiero Galicia is expected to generate 6.45 times more return on investment than Webster Financial. However, Grupo Financiero is 6.45 times more volatile than Webster Financial. It trades about 0.18 of its potential returns per unit of risk. Webster Financial is currently generating about 0.13 per unit of risk. If you would invest 3,476 in Grupo Financiero Galicia on August 24, 2025 and sell it today you would earn a total of 1,138 from holding Grupo Financiero Galicia or generate 32.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Financiero Galicia vs. Webster Financial
Performance |
| Timeline |
| Grupo Financiero Galicia |
| Webster Financial |
Grupo Financiero and Webster Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Financiero and Webster Financial
The main advantage of trading using opposite Grupo Financiero and Webster Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Financiero position performs unexpectedly, Webster 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 Webster Financial will offset losses from the drop in Webster Financial's long position.| Grupo Financiero vs. Webster Financial | Grupo Financiero vs. First Horizon National | Grupo Financiero vs. Comerica Incorporated | Grupo Financiero vs. SouthState |
| Webster Financial vs. First Horizon National | Webster Financial vs. Grupo Financiero Galicia | Webster Financial vs. Comerica Incorporated | Webster Financial vs. SouthState |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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