Correlation Between FS Bancorp and Killbuck Bancshares
Can any of the company-specific risk be diversified away by investing in both FS Bancorp and Killbuck 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 Killbuck 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 Killbuck Bancshares, you can compare the effects of market volatilities on FS Bancorp and Killbuck 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 Killbuck Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS Bancorp and Killbuck Bancshares.
Diversification Opportunities for FS Bancorp and Killbuck Bancshares
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FXLG and Killbuck is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding FS Bancorp and Killbuck Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Killbuck 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 Killbuck Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Killbuck Bancshares has no effect on the direction of FS Bancorp i.e., FS Bancorp and Killbuck Bancshares go up and down completely randomly.
Pair Corralation between FS Bancorp and Killbuck Bancshares
Given the investment horizon of 90 days FS Bancorp is expected to generate 1.56 times less return on investment than Killbuck Bancshares. But when comparing it to its historical volatility, FS Bancorp is 7.41 times less risky than Killbuck Bancshares. It trades about 0.25 of its potential returns per unit of risk. Killbuck Bancshares is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10,601 in Killbuck Bancshares on August 29, 2024 and sell it today you would earn a total of 449.00 from holding Killbuck Bancshares or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
FS Bancorp vs. Killbuck Bancshares
Performance |
| Timeline |
| FS Bancorp |
| Killbuck Bancshares |
FS Bancorp and Killbuck Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FS Bancorp and Killbuck Bancshares
The main advantage of trading using opposite FS Bancorp and Killbuck Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS Bancorp position performs unexpectedly, Killbuck 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 Killbuck Bancshares will offset losses from the drop in Killbuck Bancshares' long position.| FS Bancorp vs. Eastern Michigan Financial | FS Bancorp vs. Grand River Commerce | FS Bancorp vs. Bank of Botetourt | FS Bancorp vs. AmeriServ Financial |
| Killbuck Bancshares vs. Invesco High Income | Killbuck Bancshares vs. Blackrock Muniholdings Ny | Killbuck Bancshares vs. Nuveen California Select | Killbuck Bancshares vs. MFS Investment Grade |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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