Correlation Between Bankwell Financial and Cnb Community
Can any of the company-specific risk be diversified away by investing in both Bankwell Financial and Cnb Community 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 Bankwell Financial and Cnb Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankwell Financial Group and Cnb Community Bancorp, you can compare the effects of market volatilities on Bankwell Financial and Cnb Community 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 Bankwell Financial with a short position of Cnb Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankwell Financial and Cnb Community.
Diversification Opportunities for Bankwell Financial and Cnb Community
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bankwell and Cnb is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bankwell Financial Group and Cnb Community Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cnb Community Bancorp and Bankwell Financial 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 Bankwell Financial Group are associated (or correlated) with Cnb Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cnb Community Bancorp has no effect on the direction of Bankwell Financial i.e., Bankwell Financial and Cnb Community go up and down completely randomly.
Pair Corralation between Bankwell Financial and Cnb Community
If you would invest 3,068 in Bankwell Financial Group on September 12, 2024 and sell it today you would earn a total of 259.00 from holding Bankwell Financial Group or generate 8.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Bankwell Financial Group vs. Cnb Community Bancorp
Performance |
| Timeline |
| Bankwell Financial |
| Cnb Community Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bankwell Financial and Cnb Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankwell Financial and Cnb Community
The main advantage of trading using opposite Bankwell Financial and Cnb Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankwell Financial position performs unexpectedly, Cnb Community 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 Cnb Community will offset losses from the drop in Cnb Community's long position.| Bankwell Financial vs. Franklin Financial Services | Bankwell Financial vs. The First Bancshares, | Bankwell Financial vs. Home Federal Bancorp | Bankwell Financial vs. Lake Shore Bancorp |
| Cnb Community vs. OptimumBank Holdings | Cnb Community vs. First National Bank | Cnb Community vs. TrustCo Bank Corp | Cnb Community vs. Inter Co Class |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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