Correlation Between FS Bancorp and CCSB Financial
Can any of the company-specific risk be diversified away by investing in both FS Bancorp and CCSB Financial 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 CCSB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FS Bancorp and CCSB Financial Corp, you can compare the effects of market volatilities on FS Bancorp and CCSB Financial 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 CCSB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS Bancorp and CCSB Financial.
Diversification Opportunities for FS Bancorp and CCSB Financial
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FXLG and CCSB is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding FS Bancorp and CCSB Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCSB Financial Corp 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 CCSB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCSB Financial Corp has no effect on the direction of FS Bancorp i.e., FS Bancorp and CCSB Financial go up and down completely randomly.
Pair Corralation between FS Bancorp and CCSB Financial
Given the investment horizon of 90 days FS Bancorp is expected to generate 1.17 times more return on investment than CCSB Financial. However, FS Bancorp is 1.17 times more volatile than CCSB Financial Corp. It trades about 0.02 of its potential returns per unit of risk. CCSB Financial Corp is currently generating about -0.03 per unit of risk. If you would invest 3,026 in FS Bancorp on August 25, 2024 and sell it today you would earn a total of 124.00 from holding FS Bancorp or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 75.45% |
| Values | Daily Returns |
FS Bancorp vs. CCSB Financial Corp
Performance |
| Timeline |
| FS Bancorp |
| CCSB Financial Corp |
FS Bancorp and CCSB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FS Bancorp and CCSB Financial
The main advantage of trading using opposite FS Bancorp and CCSB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS Bancorp position performs unexpectedly, CCSB Financial 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 CCSB Financial will offset losses from the drop in CCSB Financial's long position.| FS Bancorp vs. Standard Bank Group | FS Bancorp vs. PSB Holdings | FS Bancorp vs. United Overseas Bank | FS Bancorp vs. Turkiye Garanti Bankasi |
| CCSB Financial vs. Asbury Automotive Group | CCSB Financial vs. Kite Realty Group | CCSB Financial vs. Grocery Outlet Holding | CCSB Financial vs. Corporacion America Airports |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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