Correlation Between Lakeland Bancorp and Bankwell Financial
Can any of the company-specific risk be diversified away by investing in both Lakeland Bancorp and Bankwell Financial 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 Lakeland Bancorp and Bankwell Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lakeland Bancorp and Bankwell Financial Group, you can compare the effects of market volatilities on Lakeland Bancorp and Bankwell Financial 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 Lakeland Bancorp with a short position of Bankwell Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lakeland Bancorp and Bankwell Financial.
Diversification Opportunities for Lakeland Bancorp and Bankwell Financial
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lakeland and Bankwell is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lakeland Bancorp and Bankwell Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankwell Financial and Lakeland Bancorp 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 Lakeland Bancorp are associated (or correlated) with Bankwell Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankwell Financial has no effect on the direction of Lakeland Bancorp i.e., Lakeland Bancorp and Bankwell Financial go up and down completely randomly.
Pair Corralation between Lakeland Bancorp and Bankwell Financial
If you would invest 2,884 in Bankwell Financial Group on August 29, 2024 and sell it today you would earn a total of 530.00 from holding Bankwell Financial Group or generate 18.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Lakeland Bancorp vs. Bankwell Financial Group
Performance |
| Timeline |
| Lakeland Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bankwell Financial |
Lakeland Bancorp and Bankwell Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lakeland Bancorp and Bankwell Financial
The main advantage of trading using opposite Lakeland Bancorp and Bankwell Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lakeland Bancorp position performs unexpectedly, Bankwell Financial 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 Bankwell Financial will offset losses from the drop in Bankwell Financial's long position.| Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland Bancorp vs. LINKBANCORP |
| Bankwell Financial vs. Fifth Third Bancorp | Bankwell Financial vs. Huntington Bancshares Incorporated | Bankwell Financial vs. MT Bank |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |