Correlation Between Ffbw and Five Star
Can any of the company-specific risk be diversified away by investing in both Ffbw and Five Star 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 Five Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ffbw Inc and Five Star Bancorp, you can compare the effects of market volatilities on Ffbw and Five Star 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 Five Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ffbw and Five Star.
Diversification Opportunities for Ffbw and Five Star
Very good diversification
The 3 months correlation between Ffbw and Five is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ffbw Inc and Five Star Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Five Star Bancorp 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 Five Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Five Star Bancorp has no effect on the direction of Ffbw i.e., Ffbw and Five Star go up and down completely randomly.
Pair Corralation between Ffbw and Five Star
If you would invest 1,178 in Ffbw Inc on January 23, 2024 and sell it today you would earn a total of 0.00 from holding Ffbw Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.54% |
| Values | Daily Returns |
Ffbw Inc vs. Five Star Bancorp
Performance |
| Timeline |
| Ffbw Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Five Star Bancorp |
Ffbw and Five Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ffbw and Five Star
The main advantage of trading using opposite Ffbw and Five Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ffbw position performs unexpectedly, Five Star 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 Five Star will offset losses from the drop in Five Star's long position.| Ffbw vs. Nmb Financial Corp | Ffbw vs. Hang Seng Bank | Ffbw vs. Southern BancShares NC | Ffbw vs. CCSB Financial Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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