Correlation Between Regions Financial and First Horizon
Can any of the company-specific risk be diversified away by investing in both Regions Financial and First Horizon 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 Regions Financial and First Horizon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regions Financial and First Horizon National, you can compare the effects of market volatilities on Regions Financial and First Horizon 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 Regions Financial with a short position of First Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and First Horizon.
Diversification Opportunities for Regions Financial and First Horizon
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regions and First is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and First Horizon National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Horizon National and Regions Financial 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 Regions Financial are associated (or correlated) with First Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Horizon National has no effect on the direction of Regions Financial i.e., Regions Financial and First Horizon go up and down completely randomly.
Pair Corralation between Regions Financial and First Horizon
Allowing for the 90-day total investment horizon Regions Financial is expected to under-perform the First Horizon. But the stock apears to be less risky and, when comparing its historical volatility, Regions Financial is 1.27 times less risky than First Horizon. The stock trades about -0.08 of its potential returns per unit of risk. The First Horizon National is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 2,210 in First Horizon National on July 20, 2025 and sell it today you would lose (182.00) from holding First Horizon National or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regions Financial vs. First Horizon National
Performance |
| Timeline |
| Regions Financial |
| First Horizon National |
Regions Financial and First Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regions Financial and First Horizon
The main advantage of trading using opposite Regions Financial and First Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, First Horizon 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 First Horizon will offset losses from the drop in First Horizon's long position.| Regions Financial vs. Huntington Bancshares Incorporated | Regions Financial vs. Fifth Third Bancorp | Regions Financial vs. MT Bank | Regions Financial vs. Citizens Financial Group, |
| First Horizon vs. Banco Santander Chile | First Horizon vs. Comerica Incorporated | First Horizon vs. SouthState | First Horizon vs. Webster Financial |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |