Correlation Between STAR Financial and Eastern Michigan
Can any of the company-specific risk be diversified away by investing in both STAR Financial and Eastern Michigan 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 Eastern Michigan 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 Eastern Michigan Financial, you can compare the effects of market volatilities on STAR Financial and Eastern Michigan 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 Eastern Michigan. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAR Financial and Eastern Michigan.
Diversification Opportunities for STAR Financial and Eastern Michigan
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STAR and Eastern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STAR Financial Group and Eastern Michigan Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Michigan Fin 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 Eastern Michigan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Michigan Fin has no effect on the direction of STAR Financial i.e., STAR Financial and Eastern Michigan go up and down completely randomly.
Pair Corralation between STAR Financial and Eastern Michigan
If you would invest 3,450 in Eastern Michigan Financial on August 29, 2024 and sell it today you would earn a total of 75.00 from holding Eastern Michigan Financial or generate 2.17% 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. Eastern Michigan Financial
Performance |
| Timeline |
| STAR Financial Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastern Michigan Fin |
STAR Financial and Eastern Michigan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAR Financial and Eastern Michigan
The main advantage of trading using opposite STAR Financial and Eastern Michigan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAR Financial position performs unexpectedly, Eastern Michigan 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 Eastern Michigan will offset losses from the drop in Eastern Michigan'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 |
| Eastern Michigan vs. Commercial National Financial | Eastern Michigan vs. Mifflinburg Bancorp | Eastern Michigan vs. Apollo Bancorp | Eastern Michigan vs. Community Bankers |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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