Correlation Analysis Between FVCBankcorp and Coastal Financial

This module allows you to analyze existing cross correlation between FVCBankcorp and Coastal Financial Corporation. You can compare the effects of market volatilities on FVCBankcorp and Coastal 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 FVCBankcorp with a short position of Coastal Financial. See also your portfolio center. Please also check ongoing floating volatility patterns of FVCBankcorp and Coastal Financial.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

FVCBankcorp  
00

Risk-Adjusted Performance

Over the last 30 days FVCBankcorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Coastal Financial  
33

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coastal Financial Corporation are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Coastal Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

FVCBankcorp and Coastal Financial Volatility Contrast

 Predicted Return Density 
      Returns 

FVCBankcorp Inc  vs.  Coastal Financial Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, FVCBankcorp is expected to under-perform the Coastal Financial. But the stock apears to be less risky and, when comparing its historical volatility, FVCBankcorp is 1.12 times less risky than Coastal Financial. The stock trades about -0.1 of its potential returns per unit of risk. The Coastal Financial Corporation is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,602  in Coastal Financial Corporation on November 16, 2019 and sell it today you would earn a total of  85.00  from holding Coastal Financial Corporation or generate 5.31% return on investment over 30 days.

Pair Corralation between FVCBankcorp and Coastal Financial

-0.35
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy84.21%
ValuesDaily Returns

Diversification Opportunities for FVCBankcorp and Coastal Financial

FVCBankcorp Inc diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding FVCBankcorp Inc and Coastal Financial Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coastal Financial and FVCBankcorp 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 FVCBankcorp are associated (or correlated) with Coastal Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Financial has no effect on the direction of FVCBankcorp i.e. FVCBankcorp and Coastal Financial go up and down completely randomly.
See also your portfolio center. Please also try Equity Valuation module to check real value of public entities based on technical and fundamental data.


 
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