Correlation Analysis Between Bridgewater Bancshares and Metropolitan Bank

Analyzing existing cross correlation between Bridgewater Bancshares and Metropolitan Bank Holding Corp. You can compare the effects of market volatilities on Bridgewater Bancshares and Metropolitan Bank 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 Metropolitan Bank. See also your portfolio center. Please also check ongoing floating volatility patterns of Bridgewater Bancshares and Metropolitan Bank.
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 weak basic indicators, Bridgewater Bancshares may actually be approaching a critical reversion point that can send shares even higher in February 2020.
Metropolitan Bank  
1515

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Metropolitan Bank Holding Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Metropolitan Bank sustained solid returns over the last few months and may actually be approaching a breakup point.

Bridgewater Bancshares and Metropolitan Bank Volatility Contrast

 Predicted Return Density 
    
  Returns 

Bridgewater Bancshares Inc  vs.  Metropolitan Bank Holding Corp

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Bridgewater Bancshares is expected to generate 2.22 times less return on investment than Metropolitan Bank. But when comparing it to its historical volatility, Bridgewater Bancshares is 1.32 times less risky than Metropolitan Bank. It trades about 0.13 of its potential returns per unit of risk. Metropolitan Bank Holding Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  4,130  in Metropolitan Bank Holding Corp on December 20, 2019 and sell it today you would earn a total of  618.00  from holding Metropolitan Bank Holding Corp or generate 14.96% return on investment over 30 days.

Pair Corralation between Bridgewater Bancshares and Metropolitan Bank

0.62
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy91.3%
ValuesDaily Returns

Diversification Opportunities for Bridgewater Bancshares and Metropolitan Bank

Bridgewater Bancshares Inc diversification synergy

Poor diversification

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