Correlation Between FS Bancorp and Onity

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

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

Diversification Opportunities for FS Bancorp and Onity

0.79

Correlation Coefficient

FS Bancorp  Onity

Poor diversification

The 3 months correlation between FSBW and Onity is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding FS Bancorp and Onity Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Onity Group and FS Bancorp 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 FS Bancorp are associated (or correlated) with Onity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Onity Group has no effect on the direction of FS Bancorp i.e., FS Bancorp and Onity go up and down completely randomly.

Pair Corralation between FS Bancorp and Onity

Given the investment horizon of 90 days FS Bancorp is expected to generate 0.81 times more return on investment than Onity. However, FS Bancorp is 1.23 times less risky than Onity. It trades about 0.05 of its potential returns per unit of risk. Onity Group is currently generating about 0.04 per unit of risk. If you would invest  4,067  in FS Bancorp on September 16, 2025 and sell it today you would earn a total of  227.00  from holding FS Bancorp or generate 5.58% return on investment over 90 days.

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

FS Bancorp  vs.  Onity Group

FS Bancorp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in FS Bancorp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting fundamental drivers, FS Bancorp may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Onity Group

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Onity Group are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Onity is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with FS Bancorp and Onity

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

The idea behind FS Bancorp and Onity Group 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.