Correlation Between Banner and Atlantic Union

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

By analyzing existing cross correlation between Banner and Atlantic Union Bankshares, you can compare the effects of market volatilities on Banner and Atlantic Union 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 Banner with a short position of Atlantic Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banner and Atlantic Union.

Diversification Opportunities for Banner and Atlantic Union

0.76

Correlation Coefficient

Banner  Atlantic Union

Poor diversification

The 3 months correlation between Banner and Atlantic is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Banner and Atlantic Union Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantic Union Bankshares and Banner 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 Banner are associated (or correlated) with Atlantic Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantic Union Bankshares has no effect on the direction of Banner i.e., Banner and Atlantic Union go up and down completely randomly.

Pair Corralation between Banner and Atlantic Union

Given the investment horizon of 90 days Banner is expected to generate 7.84 times less return on investment than Atlantic Union. But when comparing it to its historical volatility, Banner is 1.23 times less risky than Atlantic Union. It trades about 0.02 of its potential returns per unit of risk. Atlantic Union Bankshares is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,781  in Atlantic Union Bankshares on May 6, 2025 and sell it today you would earn a total of  342.00  from holding Atlantic Union Bankshares or generate 12.3% return on investment over 90 days.

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

Banner  vs.  Atlantic Union Bankshares

Banner

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Banner are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Banner is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Atlantic Union Bankshares

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atlantic Union Bankshares are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat fragile basic indicators, Atlantic Union sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Banner and Atlantic Union

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

The idea behind Banner and Atlantic Union Bankshares 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.