Correlation Between Ffbw and FB Financial
Can any of the company-specific risk be diversified away by investing in both Ffbw and FB 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 Ffbw and FB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ffbw Inc and FB Financial Corp, you can compare the effects of market volatilities on Ffbw and FB 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 Ffbw with a short position of FB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ffbw and FB Financial.
Diversification Opportunities for Ffbw and FB Financial
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ffbw and FBK is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ffbw Inc and FB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FB Financial Corp and Ffbw 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 Ffbw Inc are associated (or correlated) with FB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FB Financial Corp has no effect on the direction of Ffbw i.e., Ffbw and FB Financial go up and down completely randomly.
Pair Corralation between Ffbw and FB Financial
If you would invest 3,765 in FB Financial Corp on January 27, 2024 and sell it today you would earn a total of 28.00 from holding FB Financial Corp or generate 0.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ffbw Inc vs. FB Financial Corp
Performance |
| Timeline |
| Ffbw Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FB Financial Corp |
Ffbw and FB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ffbw and FB Financial
The main advantage of trading using opposite Ffbw and FB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ffbw position performs unexpectedly, FB 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 FB Financial will offset losses from the drop in FB Financial's long position.| Ffbw vs. Nmb Financial Corp | Ffbw vs. Hang Seng Bank | Ffbw vs. Southern BancShares NC | Ffbw vs. CCSB Financial Corp |
| FB Financial vs. Home Bancorp | FB Financial vs. First Business Financial | FB Financial vs. LINKBANCORP | FB Financial vs. Great Southern Bancorp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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