Correlation Between Flagstar Bancorp and Park Ohio
Can any of the company-specific risk be diversified away by investing in both Flagstar Bancorp and Park Ohio 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 Flagstar Bancorp and Park Ohio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flagstar Bancorp and Park Ohio Holdings, you can compare the effects of market volatilities on Flagstar Bancorp and Park Ohio 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 Flagstar Bancorp with a short position of Park Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flagstar Bancorp and Park Ohio.
Diversification Opportunities for Flagstar Bancorp and Park Ohio
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flagstar and Park is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flagstar Bancorp and Park Ohio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Ohio Holdings and Flagstar 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 Flagstar Bancorp are associated (or correlated) with Park Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Ohio Holdings has no effect on the direction of Flagstar Bancorp i.e., Flagstar Bancorp and Park Ohio go up and down completely randomly.
Pair Corralation between Flagstar Bancorp and Park Ohio
If you would invest 2,500 in Park Ohio Holdings on September 14, 2024 and sell it today you would earn a total of 528.00 from holding Park Ohio Holdings or generate 21.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Flagstar Bancorp vs. Park Ohio Holdings
Performance |
| Timeline |
| Flagstar Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Park Ohio Holdings |
Flagstar Bancorp and Park Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flagstar Bancorp and Park Ohio
The main advantage of trading using opposite Flagstar Bancorp and Park Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flagstar Bancorp position performs unexpectedly, Park Ohio 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 Park Ohio will offset losses from the drop in Park Ohio's long position.| Flagstar Bancorp vs. ServiceNow | Flagstar Bancorp vs. U Power Limited | Flagstar Bancorp vs. Datadog | Flagstar Bancorp vs. SmartStop Self Storage |
| Park Ohio vs. Hurco Companies | Park Ohio vs. Enerpac Tool Group | Park Ohio vs. China Yuchai International | Park Ohio vs. Luxfer Holdings PLC |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |