Correlation Between Apollo Bancorp and FS Bancorp
Can any of the company-specific risk be diversified away by investing in both Apollo Bancorp and FS Bancorp 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 Apollo Bancorp and FS Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Bancorp and FS Bancorp, you can compare the effects of market volatilities on Apollo Bancorp and FS Bancorp 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 Apollo Bancorp with a short position of FS Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and FS Bancorp.
Diversification Opportunities for Apollo Bancorp and FS Bancorp
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and FXLG is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp and FS Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS Bancorp and Apollo 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 Apollo Bancorp are associated (or correlated) with FS Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS Bancorp has no effect on the direction of Apollo Bancorp i.e., Apollo Bancorp and FS Bancorp go up and down completely randomly.
Pair Corralation between Apollo Bancorp and FS Bancorp
Given the investment horizon of 90 days Apollo Bancorp is expected to generate 9.65 times less return on investment than FS Bancorp. In addition to that, Apollo Bancorp is 2.08 times more volatile than FS Bancorp. It trades about 0.01 of its total potential returns per unit of risk. FS Bancorp is currently generating about 0.15 per unit of volatility. If you would invest 2,820 in FS Bancorp on August 25, 2024 and sell it today you would earn a total of 330.00 from holding FS Bancorp or generate 11.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 92.06% |
| Values | Daily Returns |
Apollo Bancorp vs. FS Bancorp
Performance |
| Timeline |
| Apollo Bancorp |
| FS Bancorp |
Apollo Bancorp and FS Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Bancorp and FS Bancorp
The main advantage of trading using opposite Apollo Bancorp and FS Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Bancorp position performs unexpectedly, FS Bancorp 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 FS Bancorp will offset losses from the drop in FS Bancorp's long position.| Apollo Bancorp vs. The Farmers Bank | Apollo Bancorp vs. Bank of Utica | Apollo Bancorp vs. Delhi Bank Corp | Apollo Bancorp vs. CCSB Financial Corp |
| FS Bancorp vs. Standard Bank Group | FS Bancorp vs. PSB Holdings | FS Bancorp vs. United Overseas Bank | FS Bancorp vs. Turkiye Garanti Bankasi |
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 CEOs Directory module to screen CEOs from public companies around the world.
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