Correlation Between Israel Discount and Bridgewater Bancshares
Can any of the company-specific risk be diversified away by investing in both Israel Discount and Bridgewater Bancshares 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 Israel Discount and Bridgewater Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Israel Discount Bank and Bridgewater Bancshares Depositary, you can compare the effects of market volatilities on Israel Discount and Bridgewater Bancshares 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 Israel Discount with a short position of Bridgewater Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Israel Discount and Bridgewater Bancshares.
Diversification Opportunities for Israel Discount and Bridgewater Bancshares
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Israel and Bridgewater is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Israel Discount Bank and Bridgewater Bancshares Deposit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgewater Bancshares and Israel Discount 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 Israel Discount Bank are associated (or correlated) with Bridgewater Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bridgewater Bancshares has no effect on the direction of Israel Discount i.e., Israel Discount and Bridgewater Bancshares go up and down completely randomly.
Pair Corralation between Israel Discount and Bridgewater Bancshares
If you would invest 5,819 in Israel Discount Bank on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Israel Discount Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Israel Discount Bank vs. Bridgewater Bancshares Deposit
Performance |
| Timeline |
| Israel Discount Bank |
| Bridgewater Bancshares |
Israel Discount and Bridgewater Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Israel Discount and Bridgewater Bancshares
The main advantage of trading using opposite Israel Discount and Bridgewater Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Israel Discount position performs unexpectedly, Bridgewater Bancshares 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 Bridgewater Bancshares will offset losses from the drop in Bridgewater Bancshares' long position.| Israel Discount vs. Baraboo Bancorporation | Israel Discount vs. Schweizerische Nationalbank | Israel Discount vs. Danske Bank AS | Israel Discount vs. Absa Group Limited |
| Bridgewater Bancshares vs. CNB Financial | Bridgewater Bancshares vs. First Guaranty Bancshares | Bridgewater Bancshares vs. Dime Community Bancshares | Bridgewater Bancshares vs. Brighthouse Financial |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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