Correlation Between Caseys General and Cullen/Frost Bankers

Can any of the company-specific risk be diversified away by investing in both Caseys General and Cullen/Frost Bankers 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 Caseys General and Cullen/Frost Bankers into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Caseys General Stores and CullenFrost Bankers, you can compare the effects of market volatilities on Caseys General and Cullen/Frost Bankers 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 Caseys General with a short position of Cullen/Frost Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Cullen/Frost Bankers.

Diversification Opportunities for Caseys General and Cullen/Frost Bankers

0.26

Correlation Coefficient

Caseys General  Cullen/Frost Bankers

Modest diversification

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

Pair Corralation between Caseys General and Cullen/Frost Bankers

Assuming the 90 days trading horizon Caseys General is expected to generate 1.96 times less return on investment than Cullen/Frost Bankers. In addition to that, Caseys General is 1.35 times more volatile than CullenFrost Bankers. It trades about 0.06 of its total potential returns per unit of risk. CullenFrost Bankers is currently generating about 0.15 per unit of volatility. If you would invest  10,123  in CullenFrost Bankers on April 23, 2025 and sell it today you would earn a total of  1,677  from holding CullenFrost Bankers or generate 16.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Caseys General Stores  vs.  CullenFrost Bankers

Caseys General Stores

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Caseys General Stores are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Caseys General may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Cullen/Frost Bankers

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CullenFrost Bankers are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Cullen/Frost Bankers reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Caseys General and Cullen/Frost Bankers

The main advantage of trading using opposite Caseys General and Cullen/Frost Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, Cullen/Frost Bankers 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 Cullen/Frost Bankers will offset losses from the drop in Cullen/Frost Bankers' long position.

The idea behind Caseys General Stores and CullenFrost Bankers 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.