Correlation Between State Bank and Popular
Can any of the company-specific risk be diversified away by investing in both State Bank and Popular 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 Popular 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 Popular, you can compare the effects of market volatilities on State Bank and Popular 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 Popular. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Popular.
Diversification Opportunities for State Bank and Popular
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between State and Popular is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and Popular in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Popular 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 Popular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Popular has no effect on the direction of State Bank i.e., State Bank and Popular go up and down completely randomly.
Pair Corralation between State Bank and Popular
Assuming the 90 days trading horizon State Bank of is expected to generate 0.6 times more return on investment than Popular. However, State Bank of is 1.68 times less risky than Popular. It trades about 0.2 of its potential returns per unit of risk. Popular is currently generating about -0.04 per unit of risk. If you would invest 9,300 in State Bank of on September 10, 2025 and sell it today you would earn a total of 1,340 from holding State Bank of or generate 14.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.44% |
| Values | Daily Returns |
State Bank of vs. Popular
Performance |
| Timeline |
| State Bank |
| Popular |
State Bank and Popular Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Popular
The main advantage of trading using opposite State Bank and Popular positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank position performs unexpectedly, Popular 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 Popular will offset losses from the drop in Popular's long position.| State Bank vs. Chocoladefabriken Lindt Spruengli | State Bank vs. Chocoladefabriken Lindt Spruengli | State Bank vs. Rockwood Realisation PLC | State Bank vs. Toyota Motor Corp |
| Popular vs. Zions Bancorporation | Popular vs. CullenFrost Bankers | Popular vs. Old National Bancorp | Popular vs. Commerce Bancshares |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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