Correlation Analysis Between Bridgewater Bancshares and FB Financial

Analyzing existing cross correlation between Bridgewater Bancshares and FB Financial Corporation. You can compare the effects of market volatilities on Bridgewater Bancshares and FB 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 Bridgewater Bancshares with a short position of FB Financial. See also your portfolio center. Please also check ongoing floating volatility patterns of Bridgewater Bancshares and FB Financial.
Horizon     30 Days    Login   to change
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Comparative Performance

Bridgewater Bancshares  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bridgewater Bancshares are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Despite somewhat strong basic indicators, Bridgewater Bancshares is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
FB Financial  
00

Risk-Adjusted Performance

Over the last 30 days FB Financial Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Regardless of fairly consistent technical and fundamental indicators, FB Financial is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Bridgewater Bancshares and FB Financial Volatility Contrast

 Predicted Return Density 
    
  Returns 

Bridgewater Bancshares Inc  vs.  FB Financial Corp.

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Bridgewater Bancshares is expected to generate 0.72 times more return on investment than FB Financial. However, Bridgewater Bancshares is 1.39 times less risky than FB Financial. It trades about 0.12 of its potential returns per unit of risk. FB Financial Corporation is currently generating about -0.03 per unit of risk. If you would invest  1,237  in Bridgewater Bancshares on December 21, 2019 and sell it today you would earn a total of  80.00  from holding Bridgewater Bancshares or generate 6.47% return on investment over 30 days.

Pair Corralation between Bridgewater Bancshares and FB Financial

0.39
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy92.65%
ValuesDaily Returns

Diversification Opportunities for Bridgewater Bancshares and FB Financial

Bridgewater Bancshares Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Bridgewater Bancshares Inc and FB Financial Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on FB Financial and Bridgewater Bancshares 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 Bridgewater Bancshares are associated (or correlated) with FB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FB Financial has no effect on the direction of Bridgewater Bancshares i.e. Bridgewater Bancshares and FB Financial go up and down completely randomly.
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