Correlation Analysis Between Metropolitan Bank and Coastal Financial

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

Metropolitan Bank  
1111

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Metropolitan Bank Holding Corp are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Metropolitan Bank may actually be approaching a critical reversion point that can send shares even higher in February 2020.
Coastal Financial  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coastal Financial Corporation are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. Despite somewhat weak basic indicators, Coastal Financial may actually be approaching a critical reversion point that can send shares even higher in February 2020.

Metropolitan Bank and Coastal Financial Volatility Contrast

 Predicted Return Density 
    
  Returns 

Metropolitan Bank Holding Corp  vs.  Coastal Financial Corp.

 Performance (%) 
    
  Timeline 

Pair Volatility

Considering 30-days investment horizon, Metropolitan Bank Holding Corp is expected to generate 0.75 times more return on investment than Coastal Financial. However, Metropolitan Bank Holding Corp is 1.34 times less risky than Coastal Financial. It trades about 0.17 of its potential returns per unit of risk. Coastal Financial Corporation is currently generating about 0.12 per unit of risk. If you would invest  4,207  in Metropolitan Bank Holding Corp on December 27, 2019 and sell it today you would earn a total of  527.00  from holding Metropolitan Bank Holding Corp or generate 12.53% return on investment over 30 days.

Pair Corralation between Metropolitan Bank and Coastal Financial

-0.1
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy79.49%
ValuesDaily Returns

Diversification Opportunities for Metropolitan Bank and Coastal Financial

Metropolitan Bank Holding Corp diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Metropolitan Bank Holding Corp and Coastal Financial Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coastal Financial and Metropolitan Bank 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 Metropolitan Bank Holding Corp are associated (or correlated) with Coastal Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coastal Financial has no effect on the direction of Metropolitan Bank i.e. Metropolitan Bank and Coastal Financial go up and down completely randomly.
See also your portfolio center. Please also try Pattern Recognition module to use different pattern recognition models to time the market across multiple global exchanges.