Correlation Between Fentura Financial and SVB T
Can any of the company-specific risk be diversified away by investing in both Fentura Financial and SVB T 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 Fentura Financial and SVB T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fentura Financial and SVB T Corp, you can compare the effects of market volatilities on Fentura Financial and SVB T 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 Fentura Financial with a short position of SVB T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fentura Financial and SVB T.
Diversification Opportunities for Fentura Financial and SVB T
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fentura and SVB is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Fentura Financial and SVB T Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB T Corp and Fentura Financial 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 Fentura Financial are associated (or correlated) with SVB T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB T Corp has no effect on the direction of Fentura Financial i.e., Fentura Financial and SVB T go up and down completely randomly.
Pair Corralation between Fentura Financial and SVB T
Given the investment horizon of 90 days Fentura Financial is expected to generate 1.63 times more return on investment than SVB T. However, Fentura Financial is 1.63 times more volatile than SVB T Corp. It trades about 0.13 of its potential returns per unit of risk. SVB T Corp is currently generating about 0.08 per unit of risk. If you would invest 2,315 in Fentura Financial on November 6, 2024 and sell it today you would earn a total of 1,910 from holding Fentura Financial or generate 82.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.65% |
| Values | Daily Returns |
Fentura Financial vs. SVB T Corp
Performance |
| Timeline |
| Fentura Financial |
| SVB T Corp |
Fentura Financial and SVB T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fentura Financial and SVB T
The main advantage of trading using opposite Fentura Financial and SVB T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fentura Financial position performs unexpectedly, SVB T 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 SVB T will offset losses from the drop in SVB T's long position.| Fentura Financial vs. Pioneer Bankcorp | Fentura Financial vs. Liberty Northwest Bancorp | Fentura Financial vs. First Community | Fentura Financial vs. Coeur dAlene Bancorp |
| SVB T vs. Katahdin Bankshares Corp | SVB T vs. Marquette National Corp | SVB T vs. United Bancorporation of | SVB T vs. Fentura Financial |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |