Correlation Between Bankwell Financial and Bank of South
Can any of the company-specific risk be diversified away by investing in both Bankwell Financial and Bank of South 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 Bank of South 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 Bank of South, you can compare the effects of market volatilities on Bankwell Financial and Bank of South 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 Bank of South. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankwell Financial and Bank of South.
Diversification Opportunities for Bankwell Financial and Bank of South
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bankwell and Bank is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bankwell Financial Group and Bank of South in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of South 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 Bank of South. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of South has no effect on the direction of Bankwell Financial i.e., Bankwell Financial and Bank of South go up and down completely randomly.
Pair Corralation between Bankwell Financial and Bank of South
If you would invest 2,892 in Bankwell Financial Group on September 7, 2024 and sell it today you would earn a total of 410.00 from holding Bankwell Financial Group or generate 14.18% 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. Bank of South
Performance |
Timeline |
Bankwell Financial |
Bank of South |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bankwell Financial and Bank of South Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bankwell Financial and Bank of South
The main advantage of trading using opposite Bankwell Financial and Bank of South positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankwell Financial position performs unexpectedly, Bank of South 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 Bank of South will offset losses from the drop in Bank of South's long position.Bankwell Financial vs. German American Bancorp | Bankwell Financial vs. Texas Capital Bancshares | Bankwell Financial vs. Northfield Bancorp | Bankwell Financial vs. Heritage Financial |
Bank of South vs. Auburn National Bancorporation | Bank of South vs. Bank of Marin | Bank of South vs. Ames National | Bank of South vs. CF 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |