Correlation Between Star Gas and FVCBankcorp
Can any of the company-specific risk be diversified away by investing in both Star Gas and FVCBankcorp 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 Gas and FVCBankcorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Gas Partners and FVCBankcorp, you can compare the effects of market volatilities on Star Gas and FVCBankcorp 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 Gas with a short position of FVCBankcorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Gas and FVCBankcorp.
Diversification Opportunities for Star Gas and FVCBankcorp
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Star and FVCBankcorp is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Star Gas Partners and FVCBankcorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FVCBankcorp and Star Gas 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 Gas Partners are associated (or correlated) with FVCBankcorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FVCBankcorp has no effect on the direction of Star Gas i.e., Star Gas and FVCBankcorp go up and down completely randomly.
Pair Corralation between Star Gas and FVCBankcorp
Considering the 90-day investment horizon Star Gas Partners is expected to under-perform the FVCBankcorp. But the stock apears to be less risky and, when comparing its historical volatility, Star Gas Partners is 1.79 times less risky than FVCBankcorp. The stock trades about -0.02 of its potential returns per unit of risk. The FVCBankcorp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,136 in FVCBankcorp on May 31, 2025 and sell it today you would earn a total of 220.50 from holding FVCBankcorp or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Gas Partners vs. FVCBankcorp
Performance |
| Timeline |
| Star Gas Partners |
| FVCBankcorp |
Star Gas and FVCBankcorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Gas and FVCBankcorp
The main advantage of trading using opposite Star Gas and FVCBankcorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Gas position performs unexpectedly, FVCBankcorp 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 FVCBankcorp will offset losses from the drop in FVCBankcorp's long position.| Star Gas vs. Cosan SA ADR | Star Gas vs. Delek Energy | Star Gas vs. Crossamerica Partners LP | Star Gas vs. Par Pacific Holdings |
| FVCBankcorp vs. Community West Bancshares | FVCBankcorp vs. Investar Holding Corp | FVCBankcorp vs. Finward Bancorp | FVCBankcorp vs. First Northwest Bancorp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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