Correlation Between Webster Financial and UMB Financial
Can any of the company-specific risk be diversified away by investing in both Webster Financial and UMB 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 Webster Financial and UMB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Webster Financial and UMB Financial, you can compare the effects of market volatilities on Webster Financial and UMB 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 Webster Financial with a short position of UMB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Webster Financial and UMB Financial.
Diversification Opportunities for Webster Financial and UMB Financial
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Webster and UMB is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Webster Financial and UMB Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UMB Financial and Webster 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 Webster Financial are associated (or correlated) with UMB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UMB Financial has no effect on the direction of Webster Financial i.e., Webster Financial and UMB Financial go up and down completely randomly.
Pair Corralation between Webster Financial and UMB Financial
Considering the 90-day investment horizon Webster Financial is expected to generate 0.98 times more return on investment than UMB Financial. However, Webster Financial is 1.02 times less risky than UMB Financial. It trades about 0.05 of its potential returns per unit of risk. UMB Financial is currently generating about 0.0 per unit of risk. If you would invest 6,107 in Webster Financial on September 12, 2025 and sell it today you would earn a total of 292.00 from holding Webster Financial or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Webster Financial vs. UMB Financial
Performance |
| Timeline |
| Webster Financial |
| UMB Financial |
Webster Financial and UMB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Webster Financial and UMB Financial
The main advantage of trading using opposite Webster Financial and UMB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Webster Financial position performs unexpectedly, UMB 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 UMB Financial will offset losses from the drop in UMB Financial's long position.| Webster Financial vs. First Horizon National | Webster Financial vs. Grupo Financiero Galicia | Webster Financial vs. Comerica Incorporated | Webster Financial vs. SouthState |
| UMB Financial vs. Old National Bancorp | UMB Financial vs. CullenFrost Bankers | UMB Financial vs. Wintrust Financial | UMB Financial vs. Western Alliance Bancorporation |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |