Correlation Between Bridgewater Bancshares and Ames National
Can any of the company-specific risk be diversified away by investing in both Bridgewater Bancshares and Ames National 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 Bridgewater Bancshares and Ames National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgewater Bancshares Depositary and Ames National, you can compare the effects of market volatilities on Bridgewater Bancshares and Ames National 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 Bridgewater Bancshares with a short position of Ames National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgewater Bancshares and Ames National.
Diversification Opportunities for Bridgewater Bancshares and Ames National
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bridgewater and Ames is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bridgewater Bancshares Deposit and Ames National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ames National and Bridgewater Bancshares 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 Bridgewater Bancshares Depositary are associated (or correlated) with Ames National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ames National has no effect on the direction of Bridgewater Bancshares i.e., Bridgewater Bancshares and Ames National go up and down completely randomly.
Pair Corralation between Bridgewater Bancshares and Ames National
Assuming the 90 days horizon Bridgewater Bancshares is expected to generate 1.44 times less return on investment than Ames National. But when comparing it to its historical volatility, Bridgewater Bancshares Depositary is 1.09 times less risky than Ames National. It trades about 0.11 of its potential returns per unit of risk. Ames National is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,780 in Ames National on November 28, 2024 and sell it today you would earn a total of 52.00 from holding Ames National or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgewater Bancshares Deposit vs. Ames National
Performance |
| Timeline |
| Bridgewater Bancshares |
| Ames National |
Bridgewater Bancshares and Ames National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgewater Bancshares and Ames National
The main advantage of trading using opposite Bridgewater Bancshares and Ames National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgewater Bancshares position performs unexpectedly, Ames National 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 Ames National will offset losses from the drop in Ames National's long position.| Bridgewater Bancshares vs. CNB Financial | Bridgewater Bancshares vs. First Guaranty Bancshares | Bridgewater Bancshares vs. Dime Community Bancshares | Bridgewater Bancshares vs. Brighthouse Financial |
| Ames National vs. First Community | Ames National vs. Old Point Financial | Ames National vs. Oak Valley Bancorp | Ames National vs. Chemung Financial Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |