Correlation Analysis Between Bridgewater Bancshares and FFBW

Analyzing existing cross correlation between Bridgewater Bancshares and FFBW. You can compare the effects of market volatilities on Bridgewater Bancshares and FFBW 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 FFBW. See also your portfolio center. Please also check ongoing floating volatility patterns of Bridgewater Bancshares and FFBW.
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.
FFBW  
00

Risk-Adjusted Performance

Over the last 30 days FFBW has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly weak primary indicators, FFBW showed solid returns over the last few months and may actually be approaching a breakup point.

Bridgewater Bancshares and FFBW Volatility Contrast

 Predicted Return Density 
    
  Returns 

Bridgewater Bancshares Inc  vs.  FFBW Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Bridgewater Bancshares is expected to generate 5252.1 times less return on investment than FFBW. But when comparing it to its historical volatility, Bridgewater Bancshares is 909.93 times less risky than FFBW. It trades about 0.12 of its potential returns per unit of risk. FFBW is currently generating about 0.71 of returns per unit of risk over similar time horizon. If you would invest  0.00  in FFBW on December 21, 2019 and sell it today you would earn a total of  1,075  from holding FFBW or generate 9.223372036854776E16% return on investment over 30 days.

Pair Corralation between Bridgewater Bancshares and FFBW

0.05
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy2.94%
ValuesDaily Returns

Diversification Opportunities for Bridgewater Bancshares and FFBW

Bridgewater Bancshares Inc diversification synergy

Significant diversification

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