Correlation Between Flagstar Bancorp and PSB Holdings
Can any of the company-specific risk be diversified away by investing in both Flagstar Bancorp and PSB Holdings 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 Flagstar Bancorp and PSB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flagstar Bancorp and PSB Holdings, you can compare the effects of market volatilities on Flagstar Bancorp and PSB Holdings 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 Flagstar Bancorp with a short position of PSB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flagstar Bancorp and PSB Holdings.
Diversification Opportunities for Flagstar Bancorp and PSB Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flagstar and PSB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flagstar Bancorp and PSB Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PSB Holdings and Flagstar 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 Flagstar Bancorp are associated (or correlated) with PSB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PSB Holdings has no effect on the direction of Flagstar Bancorp i.e., Flagstar Bancorp and PSB Holdings go up and down completely randomly.
Pair Corralation between Flagstar Bancorp and PSB Holdings
If you would invest (100.00) in PSB Holdings on January 24, 2024 and sell it today you would earn a total of 100.00 from holding PSB Holdings 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 |
Flagstar Bancorp vs. PSB Holdings
Performance |
| Timeline |
| Flagstar Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PSB Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Flagstar Bancorp and PSB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flagstar Bancorp and PSB Holdings
The main advantage of trading using opposite Flagstar Bancorp and PSB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flagstar Bancorp position performs unexpectedly, PSB Holdings 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 PSB Holdings will offset losses from the drop in PSB Holdings' long position.| Flagstar Bancorp vs. Kaltura | Flagstar Bancorp vs. Cadence Design Systems | Flagstar Bancorp vs. Park City Group | Flagstar Bancorp vs. AKITA Drilling |
| PSB Holdings vs. Playa Hotels Resorts | PSB Holdings vs. Oatly Group AB | PSB Holdings vs. High Performance Beverages | PSB Holdings vs. Cedar Fair LP |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |