Correlation Analysis Between Coastal Financial and Metropolitan Bank

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

Coastal Financial and Metropolitan Bank Volatility Contrast

 Predicted Return Density 
      Returns 

Coastal Financial Corp.  vs.  Metropolitan Bank Holding Corp

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, Coastal Financial is expected to generate 1.12 times less return on investment than Metropolitan Bank. In addition to that, Coastal Financial is 1.99 times more volatile than Metropolitan Bank Holding Corp. It trades about 0.1 of its total potential returns per unit of risk. Metropolitan Bank Holding Corp is currently generating about 0.23 per unit of volatility. If you would invest  3,972  in Metropolitan Bank Holding Corp on November 10, 2019 and sell it today you would earn a total of  665.00  from holding Metropolitan Bank Holding Corp or generate 16.74% return on investment over 30 days.

Pair Corralation between Coastal Financial and Metropolitan Bank

0.88
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy85.33%
ValuesDaily Returns

Diversification Opportunities for Coastal Financial and Metropolitan Bank

Coastal Financial Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Coastal Financial Corp. 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 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 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 Coastal Financial i.e. Coastal Financial and Metropolitan Bank go up and down completely randomly.
See also your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.


 
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