Correlation Between Acadian Asset and FB Financial

Can any of the company-specific risk be diversified away by investing in both Acadian Asset 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 Acadian Asset and FB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Acadian Asset Management and FB Financial Corp, you can compare the effects of market volatilities on Acadian Asset 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 Acadian Asset with a short position of FB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acadian Asset and FB Financial.

Diversification Opportunities for Acadian Asset and FB Financial

0.89

Correlation Coefficient

Acadian Asset  FB Financial

Very poor diversification

The 3 months correlation between Acadian and FBK is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Acadian Asset Management 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 Acadian Asset 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 Acadian Asset Management 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 Acadian Asset i.e., Acadian Asset and FB Financial go up and down completely randomly.

Pair Corralation between Acadian Asset and FB Financial

Given the investment horizon of 90 days Acadian Asset Management is expected to generate 1.06 times more return on investment than FB Financial. However, Acadian Asset is 1.06 times more volatile than FB Financial Corp. It trades about 0.34 of its potential returns per unit of risk. FB Financial Corp is currently generating about 0.1 per unit of risk. If you would invest  2,886  in Acadian Asset Management on May 7, 2025 and sell it today you would earn a total of  1,176  from holding Acadian Asset Management or generate 40.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Acadian Asset Management  vs.  FB Financial Corp

Acadian Asset Management

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Acadian Asset Management are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent primary indicators, Acadian Asset demonstrated solid returns over the last few months and may actually be approaching a breakup point.

FB Financial Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in FB Financial Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental drivers, FB Financial may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Acadian Asset and FB Financial

The main advantage of trading using opposite Acadian Asset and FB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acadian Asset 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.

The idea behind Acadian Asset Management and FB Financial Corp 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.