CATY vs FOA: Correlation
Measured on weekly returns over the past three years, Cathay General Bancorp (CATY) and Finance of America Companies Inc. (FOA) carry a correlation of 0.40, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CATY and FOA?
Across a 3-year window, the weekly returns of CATY and FOA correlate at 0.40, moderate. Little has changed lately, as the 1-year reading of 0.44 lands near the 3-year figure. Stretching to 5 years gives 0.29, with an annualized covariance of 831.8 %².
Among the 28 assets we track against CATY, FOA sits near the bottom by co-movement, at rank #24. Their recent paths diverged sharply: over the last 12 months CATY outperformed by 57.1 percentage points (+26.7% for CATY against -30.4% for FOA). One caveat on sizing: FOA is 2.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
CATY vs FOA: side by side
| CATY (Cathay General Bancorp) | FOA (Finance of America Companies Inc.) | |
|---|---|---|
| 1-year return | +26.7% | -30.4% |
| 5-year return | +83.2% | -65.5% |
| Volatility (ann.) | 26.8% | 76.9% |
| Beta vs S&P 500 | 0.82 | 0.77 |
| Max drawdown (3Y) | -29.7% | -71.7% |
| Market cap | $4.1B | $0.2B |
| P/E (trailing) | 12.1 | – |
| Dividend yield | 2.39% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | CATY | FOA |
|---|---|---|
| 2022 | -2.1% | -68.0% |
| 2023 | +13.5% | -13.4% |
| 2024 | +10.3% | +155.6% |
| 2025 | +4.6% | -13.9% |
| 2026 | +30.2% | -24.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CATY and FOA good diversifiers for each other?
Reasonably. At 0.40, CATY and FOA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between CATY and FOA?
The CATY/FOA correlation stands at 0.40 on a 3-year window (1 year: 0.44, 5 years: 0.29), computed from weekly returns as of 2026-08-27.
Is FOA a good diversifier for CATY?
Reasonably. At 0.40, CATY and FOA keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
What does a correlation of 0.40 mean?
On the −1 to +1 scale, 0.40 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
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Related comparisons
Hubs: CATY correlations · FOA correlations
