Correlation Between STAR Financial and Century Financial
Can any of the company-specific risk be diversified away by investing in both STAR Financial and Century 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 STAR Financial and Century Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAR Financial Group and Century Financial Corp, you can compare the effects of market volatilities on STAR Financial and Century 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 STAR Financial with a short position of Century Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAR Financial and Century Financial.
Diversification Opportunities for STAR Financial and Century Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STAR and Century is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STAR Financial Group and Century Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Century Financial Corp and STAR Financial 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 STAR Financial Group are associated (or correlated) with Century Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Century Financial Corp has no effect on the direction of STAR Financial i.e., STAR Financial and Century Financial go up and down completely randomly.
Pair Corralation between STAR Financial and Century Financial
If you would invest 3,691 in Century Financial Corp on November 18, 2024 and sell it today you would earn a total of 412.00 from holding Century Financial Corp or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
STAR Financial Group vs. Century Financial Corp
Performance |
| Timeline |
| STAR Financial Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Century Financial Corp |
STAR Financial and Century Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAR Financial and Century Financial
The main advantage of trading using opposite STAR Financial and Century Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAR Financial position performs unexpectedly, Century 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 Century Financial will offset losses from the drop in Century Financial's long position.| STAR Financial vs. Century Financial Corp | STAR Financial vs. Eastern Michigan Financial | STAR Financial vs. Grand River Commerce | STAR Financial vs. Bank of Botetourt |
| Century Financial vs. Eastern Michigan Financial | Century Financial vs. Grand River Commerce | Century Financial vs. Bank of Botetourt | Century Financial vs. FNB Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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