Correlation Between Killbuck Bancshares and FS Bancorp
Can any of the company-specific risk be diversified away by investing in both Killbuck Bancshares and FS Bancorp 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 Killbuck Bancshares and FS Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Killbuck Bancshares and FS Bancorp, you can compare the effects of market volatilities on Killbuck Bancshares and FS Bancorp 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 Killbuck Bancshares with a short position of FS Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Killbuck Bancshares and FS Bancorp.
Diversification Opportunities for Killbuck Bancshares and FS Bancorp
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Killbuck and FXLG is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Killbuck Bancshares and FS Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS Bancorp and Killbuck Bancshares 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 Killbuck Bancshares are associated (or correlated) with FS Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS Bancorp has no effect on the direction of Killbuck Bancshares i.e., Killbuck Bancshares and FS Bancorp go up and down completely randomly.
Pair Corralation between Killbuck Bancshares and FS Bancorp
Given the investment horizon of 90 days Killbuck Bancshares is expected to generate 7.49 times more return on investment than FS Bancorp. However, Killbuck Bancshares is 7.49 times more volatile than FS Bancorp. It trades about 0.05 of its potential returns per unit of risk. FS Bancorp is currently generating about 0.24 per unit of risk. If you would invest 10,601 in Killbuck Bancshares on August 25, 2024 and sell it today you would earn a total of 399.00 from holding Killbuck Bancshares or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Killbuck Bancshares vs. FS Bancorp
Performance |
| Timeline |
| Killbuck Bancshares |
| FS Bancorp |
Killbuck Bancshares and FS Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Killbuck Bancshares and FS Bancorp
The main advantage of trading using opposite Killbuck Bancshares and FS Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Killbuck Bancshares position performs unexpectedly, FS Bancorp 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 FS Bancorp will offset losses from the drop in FS Bancorp's long position.| Killbuck Bancshares vs. Invesco High Income | Killbuck Bancshares vs. Blackrock Muniholdings Ny | Killbuck Bancshares vs. MFS Investment Grade | Killbuck Bancshares vs. Federated Premier Municipal |
| FS Bancorp vs. Standard Bank Group | FS Bancorp vs. PSB Holdings | FS Bancorp vs. United Overseas Bank | FS Bancorp vs. Turkiye Garanti Bankasi |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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