Correlation Between METALL ZUG and Regions Financial
Can any of the company-specific risk be diversified away by investing in both METALL ZUG and Regions 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 METALL ZUG and Regions Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between METALL ZUG AG and Regions Financial Corp, you can compare the effects of market volatilities on METALL ZUG and Regions 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 METALL ZUG with a short position of Regions Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of METALL ZUG and Regions Financial.
Diversification Opportunities for METALL ZUG and Regions Financial
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between METALL and Regions is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding METALL ZUG AG and Regions Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regions Financial Corp and METALL ZUG 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 METALL ZUG AG are associated (or correlated) with Regions Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regions Financial Corp has no effect on the direction of METALL ZUG i.e., METALL ZUG and Regions Financial go up and down completely randomly.
Pair Corralation between METALL ZUG and Regions Financial
Assuming the 90 days trading horizon METALL ZUG is expected to generate 10.26 times less return on investment than Regions Financial. But when comparing it to its historical volatility, METALL ZUG AG is 1.63 times less risky than Regions Financial. It trades about 0.04 of its potential returns per unit of risk. Regions Financial Corp is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 2,000 in Regions Financial Corp on April 24, 2025 and sell it today you would earn a total of 633.00 from holding Regions Financial Corp or generate 31.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.41% |
Values | Daily Returns |
METALL ZUG AG vs. Regions Financial Corp
Performance |
Timeline |
METALL ZUG AG |
Regions Financial Corp |
METALL ZUG and Regions Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with METALL ZUG and Regions Financial
The main advantage of trading using opposite METALL ZUG and Regions Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if METALL ZUG position performs unexpectedly, Regions 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 Regions Financial will offset losses from the drop in Regions Financial's long position.METALL ZUG vs. Fiinu PLC | METALL ZUG vs. AFC Energy plc | METALL ZUG vs. Argo Blockchain PLC | METALL ZUG vs. Coor Service Management |
Regions Financial vs. Fiinu PLC | Regions Financial vs. AFC Energy plc | Regions Financial vs. Argo Blockchain PLC | Regions Financial vs. Coor Service Management |
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.
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