Correlation Between FS Bancorp and First Bancshares,
Can any of the company-specific risk be diversified away by investing in both FS Bancorp and First Bancshares, 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 First Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FS Bancorp and The First Bancshares,, you can compare the effects of market volatilities on FS Bancorp and First Bancshares, 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 First Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS Bancorp and First Bancshares,.
Diversification Opportunities for FS Bancorp and First Bancshares,
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FSBW and First is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding FS Bancorp and The First Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancshares, 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 First Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancshares, has no effect on the direction of FS Bancorp i.e., FS Bancorp and First Bancshares, go up and down completely randomly.
Pair Corralation between FS Bancorp and First Bancshares,
Given the investment horizon of 90 days FS Bancorp is expected to generate 2.06 times less return on investment than First Bancshares,. But when comparing it to its historical volatility, FS Bancorp is 1.29 times less risky than First Bancshares,. It trades about 0.1 of its potential returns per unit of risk. The First Bancshares, is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 3,376 in The First Bancshares, on August 30, 2024 and sell it today you would earn a total of 367.00 from holding The First Bancshares, or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
FS Bancorp vs. The First Bancshares,
Performance |
| Timeline |
| FS Bancorp |
| First Bancshares, |
FS Bancorp and First Bancshares, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FS Bancorp and First Bancshares,
The main advantage of trading using opposite FS Bancorp and First Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS Bancorp position performs unexpectedly, First Bancshares, 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 First Bancshares, will offset losses from the drop in First Bancshares,'s long position.| FS Bancorp vs. First Community | FS Bancorp vs. Oak Valley Bancorp | FS Bancorp vs. First Financial Northwest | FS Bancorp vs. ESSA Bancorp |
| First Bancshares, vs. First Northwest Bancorp | First Bancshares, vs. Community West Bancshares | First Bancshares, vs. First Financial Northwest | First Bancshares, vs. Great Southern Bancorp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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