Correlation Between Regions Financial and MT Bank
Can any of the company-specific risk be diversified away by investing in both Regions Financial and MT 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 Regions Financial and MT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regions Financial and MT Bank, you can compare the effects of market volatilities on Regions Financial and MT 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 Regions Financial with a short position of MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and MT Bank.
Diversification Opportunities for Regions Financial and MT Bank
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Regions and MTB is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial and MT Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank 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 MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank has no effect on the direction of Regions Financial i.e., Regions Financial and MT Bank go up and down completely randomly.
Pair Corralation between Regions Financial and MT Bank
Allowing for the 90-day total investment horizon Regions Financial is expected to under-perform the MT Bank. In addition to that, Regions Financial is 1.13 times more volatile than MT Bank. It trades about -0.08 of its total potential returns per unit of risk. MT Bank is currently generating about -0.07 per unit of volatility. If you would invest 19,382 in MT Bank on July 20, 2025 and sell it today you would lose (1,315) from holding MT Bank or give up 6.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regions Financial vs. MT Bank
Performance |
| Timeline |
| Regions Financial |
| MT Bank |
Regions Financial and MT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regions Financial and MT Bank
The main advantage of trading using opposite Regions Financial and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, MT 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 MT Bank will offset losses from the drop in MT Bank'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, |
| MT Bank vs. Fifth Third Bancorp | MT Bank vs. KB Financial Group | MT Bank vs. Truist Financial Corp | MT Bank vs. Banco Bradesco SA |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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