Correlation Between Brookline Bancorp and CF Bankshares
Can any of the company-specific risk be diversified away by investing in both Brookline Bancorp and CF Bankshares 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 Brookline Bancorp and CF Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookline Bancorp and CF Bankshares, you can compare the effects of market volatilities on Brookline Bancorp and CF Bankshares 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 Brookline Bancorp with a short position of CF Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookline Bancorp and CF Bankshares.
Diversification Opportunities for Brookline Bancorp and CF Bankshares
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brookline and CFBK is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Brookline Bancorp and CF Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CF Bankshares and Brookline 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 Brookline Bancorp are associated (or correlated) with CF Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CF Bankshares has no effect on the direction of Brookline Bancorp i.e., Brookline Bancorp and CF Bankshares go up and down completely randomly.
Pair Corralation between Brookline Bancorp and CF Bankshares
Given the investment horizon of 90 days Brookline Bancorp is expected to generate 0.54 times more return on investment than CF Bankshares. However, Brookline Bancorp is 1.87 times less risky than CF Bankshares. It trades about 0.14 of its potential returns per unit of risk. CF Bankshares is currently generating about -0.12 per unit of risk. If you would invest 1,153 in Brookline Bancorp on October 20, 2024 and sell it today you would earn a total of 47.00 from holding Brookline Bancorp or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookline Bancorp vs. CF Bankshares
Performance |
| Timeline |
| Brookline Bancorp |
| CF Bankshares |
Brookline Bancorp and CF Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookline Bancorp and CF Bankshares
The main advantage of trading using opposite Brookline Bancorp and CF Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookline Bancorp position performs unexpectedly, CF Bankshares 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 CF Bankshares will offset losses from the drop in CF Bankshares' long position.| Brookline Bancorp vs. Heritage Commerce Corp | Brookline Bancorp vs. Eastern Bankshares | Brookline Bancorp vs. HarborOne Bancorp | Brookline Bancorp vs. Kearny Financial Corp |
| CF Bankshares vs. Magyar Bancorp | CF Bankshares vs. Home Federal Bancorp | CF Bankshares vs. Community West Bancshares | CF Bankshares vs. First Financial Northwest |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |