Correlation Between Sturgis Bancorp and FS Bancorp
Can any of the company-specific risk be diversified away by investing in both Sturgis Bancorp 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 Sturgis Bancorp and FS Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sturgis Bancorp and FS Bancorp, you can compare the effects of market volatilities on Sturgis Bancorp 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 Sturgis Bancorp with a short position of FS Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sturgis Bancorp and FS Bancorp.
Diversification Opportunities for Sturgis Bancorp and FS Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sturgis and FXLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sturgis Bancorp and FS Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS Bancorp and Sturgis 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 Sturgis Bancorp 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 Sturgis Bancorp i.e., Sturgis Bancorp and FS Bancorp go up and down completely randomly.
Pair Corralation between Sturgis Bancorp and FS Bancorp
If you would invest 3,011 in FS Bancorp on August 29, 2024 and sell it today you would earn a total of 139.00 from holding FS Bancorp or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Sturgis Bancorp vs. FS Bancorp
Performance |
| Timeline |
| Sturgis Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FS Bancorp |
Sturgis Bancorp and FS Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sturgis Bancorp and FS Bancorp
The main advantage of trading using opposite Sturgis Bancorp and FS Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sturgis Bancorp 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.| Sturgis Bancorp vs. FS Bancorp | Sturgis Bancorp vs. Eastern Michigan Financial | Sturgis Bancorp vs. Grand River Commerce | Sturgis Bancorp vs. Bank of Botetourt |
| FS Bancorp vs. Eastern Michigan Financial | FS Bancorp vs. Grand River Commerce | FS Bancorp vs. Bank of Botetourt | FS Bancorp vs. AmeriServ Financial |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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