Correlation Between State Bank and Associated Banc
Can any of the company-specific risk be diversified away by investing in both State Bank and Associated Banc 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 State Bank and Associated Banc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Bank of and Associated Banc Corp, you can compare the effects of market volatilities on State Bank and Associated Banc 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 State Bank with a short position of Associated Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Associated Banc.
Diversification Opportunities for State Bank and Associated Banc
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Associated is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Associated Banc Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Banc Corp and State 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 State Bank of are associated (or correlated) with Associated Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Banc Corp has no effect on the direction of State Bank i.e., State Bank and Associated Banc go up and down completely randomly.
Pair Corralation between State Bank and Associated Banc
Assuming the 90 days trading horizon State Bank of is expected to generate 0.49 times more return on investment than Associated Banc. However, State Bank of is 2.03 times less risky than Associated Banc. It trades about 0.3 of its potential returns per unit of risk. Associated Banc Corp is currently generating about 0.0 per unit of risk. If you would invest 9,210 in State Bank of on September 3, 2025 and sell it today you would earn a total of 1,710 from holding State Bank of or generate 18.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
State Bank of vs. Associated Banc Corp
Performance |
| Timeline |
| State Bank |
| Associated Banc Corp |
State Bank and Associated Banc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Associated Banc
The main advantage of trading using opposite State Bank and Associated Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Associated Banc 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 Associated Banc will offset losses from the drop in Associated Banc's long position.| State Bank vs. Indutrade AB | State Bank vs. Infrastrutture Wireless Italiane | State Bank vs. Auto Trader Group | State Bank vs. Roebuck Food Group |
| Associated Banc vs. Global Net Lease | Associated Banc vs. Westrock Coffee | Associated Banc vs. Mako Mining Corp | Associated Banc vs. China Aircraft Leasing |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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