Correlation Between BayCom Corp and FVCBankcorp

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

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

Diversification Opportunities for BayCom Corp and FVCBankcorp

0.72

Correlation Coefficient

BayCom Corp  FVCBankcorp

Poor diversification

The 3 months correlation between BayCom and FVCBankcorp is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding BayCom Corp and FVCBankcorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FVCBankcorp and BayCom Corp 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 BayCom Corp are associated (or correlated) with FVCBankcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FVCBankcorp has no effect on the direction of BayCom Corp i.e., BayCom Corp and FVCBankcorp go up and down completely randomly.

Pair Corralation between BayCom Corp and FVCBankcorp

Given the investment horizon of 90 days BayCom Corp is expected to generate 0.99 times more return on investment than FVCBankcorp. However, BayCom Corp is 1.01 times less risky than FVCBankcorp. It trades about 0.1 of its potential returns per unit of risk. FVCBankcorp is currently generating about 0.02 per unit of risk. If you would invest  2,765  in BayCom Corp on May 16, 2025 and sell it today you would earn a total of  96.00  from holding BayCom Corp or generate 3.47% return on investment over 90 days.

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

BayCom Corp  vs.  FVCBankcorp

BayCom Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in BayCom Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent primary indicators, BayCom Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

FVCBankcorp

Risk-Adjusted Performance

Fair

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

Pair Trading with BayCom Corp and FVCBankcorp

The main advantage of trading using opposite BayCom Corp and FVCBankcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BayCom Corp position performs unexpectedly, FVCBankcorp 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 FVCBankcorp will offset losses from the drop in FVCBankcorp's long position.

The idea behind BayCom Corp and FVCBankcorp 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.