Correlation Between FVCBankcorp and Ffbw
Can any of the company-specific risk be diversified away by investing in both FVCBankcorp and Ffbw 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 FVCBankcorp and Ffbw into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FVCBankcorp and Ffbw Inc, you can compare the effects of market volatilities on FVCBankcorp and Ffbw 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 Ffbw. Check out your portfolio center. Please also check ongoing floating volatility patterns of FVCBankcorp and Ffbw.
Diversification Opportunities for FVCBankcorp and Ffbw
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FVCBankcorp and Ffbw is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding FVCBankcorp and Ffbw Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ffbw Inc 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 Ffbw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ffbw Inc has no effect on the direction of FVCBankcorp i.e., FVCBankcorp and Ffbw go up and down completely randomly.
Pair Corralation between FVCBankcorp and Ffbw
If you would invest 1,178 in Ffbw Inc on January 26, 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 Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
FVCBankcorp vs. Ffbw Inc
Performance |
| Timeline |
| FVCBankcorp |
| Ffbw Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FVCBankcorp and Ffbw Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FVCBankcorp and Ffbw
The main advantage of trading using opposite FVCBankcorp and Ffbw positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FVCBankcorp position performs unexpectedly, Ffbw 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 Ffbw will offset losses from the drop in Ffbw's long position.| FVCBankcorp vs. HMN Financial | FVCBankcorp vs. Home Federal Bancorp | FVCBankcorp vs. First Financial Northwest | FVCBankcorp vs. First Northwest Bancorp |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |