Correlation Between FS Bancorp and STAR Financial
Can any of the company-specific risk be diversified away by investing in both FS Bancorp and STAR 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 STAR 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 STAR Financial Group, you can compare the effects of market volatilities on FS Bancorp and STAR 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 STAR Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of FS Bancorp and STAR Financial.
Diversification Opportunities for FS Bancorp and STAR Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FXLG and STAR is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FS Bancorp and STAR Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAR Financial Group 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 STAR Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAR Financial Group has no effect on the direction of FS Bancorp i.e., FS Bancorp and STAR Financial go up and down completely randomly.
Pair Corralation between FS Bancorp and STAR Financial
If you would invest 3,100 in FS Bancorp on August 29, 2024 and sell it today you would earn a total of 50.00 from holding FS Bancorp or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FS Bancorp vs. STAR Financial Group
Performance |
| Timeline |
| FS Bancorp |
| STAR Financial Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FS Bancorp and STAR Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FS Bancorp and STAR Financial
The main advantage of trading using opposite FS Bancorp and STAR Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FS Bancorp position performs unexpectedly, STAR 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 STAR Financial will offset losses from the drop in STAR Financial's 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 |
| STAR Financial vs. Century Financial Corp | STAR Financial vs. Eastern Michigan Financial | STAR Financial vs. Grand River Commerce | STAR Financial vs. Bank of Botetourt |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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