Correlation Between Schweizerische Nationalbank and Bridgewater Bancshares
Can any of the company-specific risk be diversified away by investing in both Schweizerische Nationalbank 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 Schweizerische Nationalbank and Bridgewater Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schweizerische Nationalbank and Bridgewater Bancshares Depositary, you can compare the effects of market volatilities on Schweizerische Nationalbank 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 Schweizerische Nationalbank with a short position of Bridgewater Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schweizerische Nationalbank and Bridgewater Bancshares.
Diversification Opportunities for Schweizerische Nationalbank and Bridgewater Bancshares
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Schweizerische and Bridgewater is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Schweizerische Nationalbank and Bridgewater Bancshares Deposit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgewater Bancshares and Schweizerische Nationalbank 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 Schweizerische Nationalbank 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 Schweizerische Nationalbank i.e., Schweizerische Nationalbank and Bridgewater Bancshares go up and down completely randomly.
Pair Corralation between Schweizerische Nationalbank and Bridgewater Bancshares
Assuming the 90 days horizon Schweizerische Nationalbank is expected to under-perform the Bridgewater Bancshares. But the pink sheet apears to be less risky and, when comparing its historical volatility, Schweizerische Nationalbank is 1.17 times less risky than Bridgewater Bancshares. The pink sheet trades about -0.03 of its potential returns per unit of risk. The Bridgewater Bancshares Depositary is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,800 in Bridgewater Bancshares Depositary on October 21, 2024 and sell it today you would earn a total of 150.00 from holding Bridgewater Bancshares Depositary or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Schweizerische Nationalbank vs. Bridgewater Bancshares Deposit
Performance |
| Timeline |
| Schweizerische Nationalbank |
| Bridgewater Bancshares |
Schweizerische Nationalbank and Bridgewater Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schweizerische Nationalbank and Bridgewater Bancshares
The main advantage of trading using opposite Schweizerische Nationalbank and Bridgewater Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schweizerische Nationalbank 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.| Schweizerische Nationalbank vs. Israel Discount Bank | Schweizerische Nationalbank vs. Baraboo Bancorporation | Schweizerische Nationalbank vs. Danske Bank AS | Schweizerische Nationalbank vs. Jyske Bank AS |
| 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 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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