Correlation Between Vanguard Total and Bridgewater Bancshares
Can any of the company-specific risk be diversified away by investing in both Vanguard Total 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 Vanguard Total and Bridgewater Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard Total Bond and Bridgewater Bancshares, you can compare the effects of market volatilities on Vanguard Total 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 Vanguard Total with a short position of Bridgewater Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard Total and Bridgewater Bancshares.
Diversification Opportunities for Vanguard Total and Bridgewater Bancshares
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Vanguard and Bridgewater is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard Total Bond and Bridgewater Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bridgewater Bancshares and Vanguard Total 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 Vanguard Total Bond 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 Vanguard Total i.e., Vanguard Total and Bridgewater Bancshares go up and down completely randomly.
Pair Corralation between Vanguard Total and Bridgewater Bancshares
Considering the 90-day investment horizon Vanguard Total Bond is expected to under-perform the Bridgewater Bancshares. But the etf apears to be less risky and, when comparing its historical volatility, Vanguard Total Bond is 4.6 times less risky than Bridgewater Bancshares. The etf trades about -0.23 of its potential returns per unit of risk. The Bridgewater Bancshares is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,133 in Bridgewater Bancshares on January 25, 2024 and sell it today you would earn a total of 76.00 from holding Bridgewater Bancshares or generate 6.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Vanguard Total Bond vs. Bridgewater Bancshares
Performance |
Timeline |
Vanguard Total Bond |
Bridgewater Bancshares |
Vanguard Total and Bridgewater Bancshares Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Vanguard Total and Bridgewater Bancshares
The main advantage of trading using opposite Vanguard Total and Bridgewater Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard Total 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.Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Total International | Vanguard Total vs. Vanguard Total Stock | Vanguard Total vs. Vanguard Real Estate |
Bridgewater Bancshares vs. HMN Financial | Bridgewater Bancshares vs. Home Federal Bancorp | Bridgewater Bancshares vs. First Financial Northwest | Bridgewater Bancshares vs. First Northwest 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |