Correlation Between Bridgewater Bancshares and First Guaranty
Can any of the company-specific risk be diversified away by investing in both Bridgewater Bancshares and First Guaranty 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 First Guaranty 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 First Guaranty Bancshares, you can compare the effects of market volatilities on Bridgewater Bancshares and First Guaranty 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 First Guaranty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgewater Bancshares and First Guaranty.
Diversification Opportunities for Bridgewater Bancshares and First Guaranty
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bridgewater and First is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bridgewater Bancshares Deposit and First Guaranty Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Guaranty Bancshares 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 First Guaranty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Guaranty Bancshares has no effect on the direction of Bridgewater Bancshares i.e., Bridgewater Bancshares and First Guaranty go up and down completely randomly.
Pair Corralation between Bridgewater Bancshares and First Guaranty
Assuming the 90 days horizon Bridgewater Bancshares Depositary is expected to under-perform the First Guaranty. But the preferred stock apears to be less risky and, when comparing its historical volatility, Bridgewater Bancshares Depositary is 1.76 times less risky than First Guaranty. The preferred stock trades about -0.01 of its potential returns per unit of risk. The First Guaranty Bancshares is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,960 in First Guaranty Bancshares on November 18, 2024 and sell it today you would earn a total of 51.00 from holding First Guaranty Bancshares or generate 2.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgewater Bancshares Deposit vs. First Guaranty Bancshares
Performance |
| Timeline |
| Bridgewater Bancshares |
| First Guaranty Bancshares |
Bridgewater Bancshares and First Guaranty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgewater Bancshares and First Guaranty
The main advantage of trading using opposite Bridgewater Bancshares and First Guaranty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgewater Bancshares position performs unexpectedly, First Guaranty 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 First Guaranty will offset losses from the drop in First Guaranty'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 |
| First Guaranty vs. CNB Financial | First Guaranty vs. First Citizens BancShares | First Guaranty vs. Texas Capital Bancshares | First Guaranty vs. Merchants 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |