Correlation Between Bridgewater Bancshares and First Of
Can any of the company-specific risk be diversified away by investing in both Bridgewater Bancshares and First Of 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 Of 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 of Long, you can compare the effects of market volatilities on Bridgewater Bancshares and First Of 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 Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgewater Bancshares and First Of.
Diversification Opportunities for Bridgewater Bancshares and First Of
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bridgewater and First is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bridgewater Bancshares Deposit and First of Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First of Long 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 Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First of Long has no effect on the direction of Bridgewater Bancshares i.e., Bridgewater Bancshares and First Of go up and down completely randomly.
Pair Corralation between Bridgewater Bancshares and First Of
Assuming the 90 days horizon Bridgewater Bancshares is expected to generate 2.81 times less return on investment than First Of. But when comparing it to its historical volatility, Bridgewater Bancshares Depositary is 2.28 times less risky than First Of. It trades about 0.11 of its potential returns per unit of risk. First of Long is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,228 in First of Long on November 28, 2024 and sell it today you would earn a total of 68.00 from holding First of Long or generate 5.54% 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 of Long
Performance |
| Timeline |
| Bridgewater Bancshares |
| First of Long |
Bridgewater Bancshares and First Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgewater Bancshares and First Of
The main advantage of trading using opposite Bridgewater Bancshares and First Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgewater Bancshares position performs unexpectedly, First Of 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 Of will offset losses from the drop in First Of'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 Of vs. Great Southern Bancorp | First Of vs. Enterprise Bancorp | First Of vs. Home Bancorp | First Of vs. Community West Bancshares |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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