Correlation Between Bankwell Financial and SASOL
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By analyzing existing cross correlation between Bankwell Financial Group and SASOL FING USA, you can compare the effects of market volatilities on Bankwell Financial and SASOL 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 SASOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankwell Financial and SASOL.
Diversification Opportunities for Bankwell Financial and SASOL
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bankwell and SASOL is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Bankwell Financial Group and SASOL FING USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASOL FING USA 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 SASOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASOL FING USA has no effect on the direction of Bankwell Financial i.e., Bankwell Financial and SASOL go up and down completely randomly.
Pair Corralation between Bankwell Financial and SASOL
Given the investment horizon of 90 days Bankwell Financial Group is expected to generate 1.96 times more return on investment than SASOL. However, Bankwell Financial is 1.96 times more volatile than SASOL FING USA. It trades about 0.32 of its potential returns per unit of risk. SASOL FING USA is currently generating about -0.01 per unit of risk. If you would invest 2,873 in Bankwell Financial Group on November 9, 2024 and sell it today you would earn a total of 393.00 from holding Bankwell Financial Group or generate 13.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bankwell Financial Group vs. SASOL FING USA
Performance |
| Timeline |
| Bankwell Financial |
| SASOL FING USA |
Bankwell Financial and SASOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankwell Financial and SASOL
The main advantage of trading using opposite Bankwell Financial and SASOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankwell Financial position performs unexpectedly, SASOL 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 SASOL will offset losses from the drop in SASOL'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 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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