Correlation Analysis Between Coastal Financial and Bridgewater Bancshares

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

Coastal Financial  
66

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coastal Financial Corporation are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Coastal Financial sustained solid returns over the last few months and may actually be approaching a breakup point.
Bridgewater Bancshares  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bridgewater Bancshares are ranked lower than 10 (%) 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 January 2020.

Coastal Financial and Bridgewater Bancshares Volatility Contrast

 Predicted Return Density 
      Returns 

Coastal Financial Corp.  vs.  Bridgewater Bancshares Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Coastal Financial Corporation is expected to generate 2.39 times more return on investment than Bridgewater Bancshares. However, Coastal Financial is 2.39 times more volatile than Bridgewater Bancshares. It trades about 0.09 of its potential returns per unit of risk. Bridgewater Bancshares is currently generating about 0.15 per unit of risk. If you would invest  1,471  in Coastal Financial Corporation on November 10, 2019 and sell it today you would earn a total of  212.00  from holding Coastal Financial Corporation or generate 14.41% return on investment over 30 days.

Pair Corralation between Coastal Financial and Bridgewater Bancshares

0.69
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy90.67%
ValuesDaily Returns

Diversification Opportunities for Coastal Financial and Bridgewater Bancshares

Coastal Financial Corp. diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Coastal Financial Corp. and Bridgewater Bancshares Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bridgewater Bancshares and Coastal 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 Coastal Financial Corporation 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 Coastal Financial i.e. Coastal Financial and Bridgewater Bancshares go up and down completely randomly.
See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.


 
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