Correlation Between Bridgewater Bancshares and Schweizerische Nationalbank
Can any of the company-specific risk be diversified away by investing in both Bridgewater Bancshares and Schweizerische Nationalbank 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 Schweizerische Nationalbank 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 Schweizerische Nationalbank, you can compare the effects of market volatilities on Bridgewater Bancshares and Schweizerische Nationalbank 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 Schweizerische Nationalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgewater Bancshares and Schweizerische Nationalbank.
Diversification Opportunities for Bridgewater Bancshares and Schweizerische Nationalbank
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bridgewater and Schweizerische is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bridgewater Bancshares Deposit and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank 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 Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Bridgewater Bancshares i.e., Bridgewater Bancshares and Schweizerische Nationalbank go up and down completely randomly.
Pair Corralation between Bridgewater Bancshares and Schweizerische Nationalbank
Assuming the 90 days horizon Bridgewater Bancshares Depositary is expected to generate 0.68 times more return on investment than Schweizerische Nationalbank. However, Bridgewater Bancshares Depositary is 1.48 times less risky than Schweizerische Nationalbank. It trades about 0.05 of its potential returns per unit of risk. Schweizerische Nationalbank is currently generating about 0.03 per unit of risk. If you would invest 1,930 in Bridgewater Bancshares Depositary on November 2, 2024 and sell it today you would earn a total of 45.00 from holding Bridgewater Bancshares Depositary or generate 2.33% 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. Schweizerische Nationalbank
Performance |
| Timeline |
| Bridgewater Bancshares |
| Schweizerische Nationalbank |
Bridgewater Bancshares and Schweizerische Nationalbank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgewater Bancshares and Schweizerische Nationalbank
The main advantage of trading using opposite Bridgewater Bancshares and Schweizerische Nationalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgewater Bancshares position performs unexpectedly, Schweizerische Nationalbank 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 Schweizerische Nationalbank will offset losses from the drop in Schweizerische Nationalbank'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 |
| Schweizerische Nationalbank vs. Israel Discount Bank | Schweizerische Nationalbank vs. Baraboo Bancorporation | Schweizerische Nationalbank vs. Danske Bank AS | Schweizerische Nationalbank vs. Jyske Bank AS |
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.
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