Correlation Between STAR Financial and F M
Can any of the company-specific risk be diversified away by investing in both STAR Financial and F M 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 F M 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 F M Bank, you can compare the effects of market volatilities on STAR Financial and F M 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 F M. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAR Financial and F M.
Diversification Opportunities for STAR Financial and F M
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STAR and FMBM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STAR Financial Group and F M Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on F M Bank 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 F M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of F M Bank has no effect on the direction of STAR Financial i.e., STAR Financial and F M go up and down completely randomly.
Pair Corralation between STAR Financial and F M
If you would invest (100.00) in STAR Financial Group on August 25, 2024 and sell it today you would earn a total of 100.00 from holding STAR Financial Group or generate -100.0% 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. F M Bank
Performance |
| Timeline |
| STAR Financial Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| F M Bank |
STAR Financial and F M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAR Financial and F M
The main advantage of trading using opposite STAR Financial and F M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAR Financial position performs unexpectedly, F M 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 F M will offset losses from the drop in F M'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 |
| F M vs. Invesco High Income | F M vs. Blackrock Muniholdings Ny | F M vs. MFS Investment Grade | F M vs. Federated Premier Municipal |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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