Correlation Between Regions Financial and Pets At

Can any of the company-specific risk be diversified away by investing in both Regions Financial and Pets At 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 Pets At into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Regions Financial Corp and Pets at Home, you can compare the effects of market volatilities on Regions Financial and Pets At 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 Pets At. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regions Financial and Pets At.

Diversification Opportunities for Regions Financial and Pets At

0.26

Correlation Coefficient

Regions Financial  Pets At

Modest diversification

The 3 months correlation between Regions and Pets is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Regions Financial Corp and Pets at Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pets at Home 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 Corp are associated (or correlated) with Pets At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pets at Home has no effect on the direction of Regions Financial i.e., Regions Financial and Pets At go up and down completely randomly.

Pair Corralation between Regions Financial and Pets At

Assuming the 90 days trading horizon Regions Financial Corp is expected to generate 1.28 times more return on investment than Pets At. However, Regions Financial is 1.28 times more volatile than Pets at Home. It trades about 0.26 of its potential returns per unit of risk. Pets at Home is currently generating about 0.09 per unit of risk. If you would invest  2,000  in Regions Financial Corp on April 24, 2025 and sell it today you would earn a total of  628.00  from holding Regions Financial Corp or generate 31.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Regions Financial Corp  vs.  Pets at Home

Regions Financial Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Regions Financial Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Regions Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pets at Home

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Pets at Home are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Pets At may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Regions Financial and Pets At

The main advantage of trading using opposite Regions Financial and Pets At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regions Financial position performs unexpectedly, Pets At 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 Pets At will offset losses from the drop in Pets At's long position.

The idea behind Regions Financial Corp and Pets at Home pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.