Correlation Between Washington Federal and Banc Of

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Washington Federal and Banc Of 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 Washington Federal and Banc Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Federal and Banc of California, you can compare the effects of market volatilities on Washington Federal and Banc Of 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 Washington Federal with a short position of Banc Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Federal and Banc Of.

Diversification Opportunities for Washington Federal and Banc Of

0.49
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Washington and Banc is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Washington Federal and Banc of California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banc of California and Washington Federal 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 Washington Federal are associated (or correlated) with Banc Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banc of California has no effect on the direction of Washington Federal i.e., Washington Federal and Banc Of go up and down completely randomly.

Pair Corralation between Washington Federal and Banc Of

Given the investment horizon of 90 days Washington Federal is expected to generate 2.75 times more return on investment than Banc Of. However, Washington Federal is 2.75 times more volatile than Banc of California. It trades about 0.06 of its potential returns per unit of risk. Banc of California is currently generating about 0.09 per unit of risk. If you would invest  2,812  in Washington Federal on May 6, 2025 and sell it today you would earn a total of  129.00  from holding Washington Federal or generate 4.59% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Washington Federal  vs.  Banc of California

 Performance 
       Timeline  
Washington Federal 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Washington Federal are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Washington Federal is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Banc of California 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Banc of California are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Banc Of is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Washington Federal and Banc Of Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Washington Federal and Banc Of

The main advantage of trading using opposite Washington Federal and Banc Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Federal position performs unexpectedly, Banc Of 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 Banc Of will offset losses from the drop in Banc Of's long position.
The idea behind Washington Federal and Banc of California 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Commodity Directory
Find actively traded commodities issued by global exchanges
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments