Correlation Between FVCBankcorp and Amerant Bancorp
Can any of the company-specific risk be diversified away by investing in both FVCBankcorp and Amerant 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 FVCBankcorp and Amerant Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FVCBankcorp and Amerant Bancorp, you can compare the effects of market volatilities on FVCBankcorp and Amerant 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 FVCBankcorp with a short position of Amerant Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FVCBankcorp and Amerant Bancorp.
Diversification Opportunities for FVCBankcorp and Amerant Bancorp
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FVCBankcorp and Amerant is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding FVCBankcorp and Amerant Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amerant Bancorp and FVCBankcorp 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 FVCBankcorp are associated (or correlated) with Amerant Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amerant Bancorp has no effect on the direction of FVCBankcorp i.e., FVCBankcorp and Amerant Bancorp go up and down completely randomly.
Pair Corralation between FVCBankcorp and Amerant Bancorp
Given the investment horizon of 90 days FVCBankcorp is expected to generate 1.26 times less return on investment than Amerant Bancorp. But when comparing it to its historical volatility, FVCBankcorp is 1.09 times less risky than Amerant Bancorp. It trades about 0.14 of its potential returns per unit of risk. Amerant Bancorp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,760 in Amerant Bancorp on May 27, 2025 and sell it today you would earn a total of 361.00 from holding Amerant Bancorp or generate 20.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FVCBankcorp vs. Amerant Bancorp
Performance |
| Timeline |
| FVCBankcorp |
| Amerant Bancorp |
FVCBankcorp and Amerant Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FVCBankcorp and Amerant Bancorp
The main advantage of trading using opposite FVCBankcorp and Amerant Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FVCBankcorp position performs unexpectedly, Amerant 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 Amerant Bancorp will offset losses from the drop in Amerant Bancorp's long position.| FVCBankcorp vs. Community West Bancshares | FVCBankcorp vs. Investar Holding Corp | FVCBankcorp vs. Finward Bancorp | FVCBankcorp vs. First Northwest Bancorp |
| Amerant Bancorp vs. Bayfirst Financial Corp | Amerant Bancorp vs. ACNB Corporation | Amerant Bancorp vs. Affinity Bancshares | Amerant Bancorp vs. Amalgamated Bank |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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