Correlation Between Bayfirst Financial and BayCom Corp

Can any of the company-specific risk be diversified away by investing in both Bayfirst Financial and BayCom Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bayfirst Financial and BayCom Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bayfirst Financial Corp and BayCom Corp, you can compare the effects of market volatilities on Bayfirst Financial and BayCom Corp 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 Bayfirst Financial with a short position of BayCom Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayfirst Financial and BayCom Corp.

Diversification Opportunities for Bayfirst Financial and BayCom Corp

-0.22

Correlation Coefficient

Bayfirst Financial  BayCom Corp

Very good diversification

The 3 months correlation between Bayfirst and BayCom is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Bayfirst Financial Corp and BayCom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BayCom Corp and Bayfirst 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 Bayfirst Financial Corp are associated (or correlated) with BayCom Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BayCom Corp has no effect on the direction of Bayfirst Financial i.e., Bayfirst Financial and BayCom Corp go up and down completely randomly.

Pair Corralation between Bayfirst Financial and BayCom Corp

Given the investment horizon of 90 days Bayfirst Financial Corp is expected to under-perform the BayCom Corp. In addition to that, Bayfirst Financial is 2.3 times more volatile than BayCom Corp. It trades about -0.2 of its total potential returns per unit of risk. BayCom Corp is currently generating about 0.05 per unit of volatility. If you would invest  2,711  in BayCom Corp on May 15, 2025 and sell it today you would earn a total of  122.00  from holding BayCom Corp or generate 4.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bayfirst Financial Corp  vs.  BayCom Corp

Bayfirst Financial Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Bayfirst Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

BayCom Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in BayCom Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent primary indicators, BayCom Corp is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Bayfirst Financial and BayCom Corp

The main advantage of trading using opposite Bayfirst Financial and BayCom Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bayfirst Financial position performs unexpectedly, BayCom Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BayCom Corp will offset losses from the drop in BayCom Corp's long position.

The idea behind Bayfirst Financial Corp and BayCom Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.