Correlation Between Brookline Bancorp and Flushing Financial

Can any of the company-specific risk be diversified away by investing in both Brookline Bancorp and Flushing Financial 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 Brookline Bancorp and Flushing Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Brookline Bancorp and Flushing Financial

0.88

Correlation Coefficient

Brookline Bancorp  Flushing Financial

Very poor diversification

The 3 months correlation between Brookline and Flushing is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Brookline Bancorp and Flushing Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flushing Financial and Brookline Bancorp 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 Brookline Bancorp are associated (or correlated) with Flushing Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flushing Financial has no effect on the direction of Brookline Bancorp i.e., Brookline Bancorp and Flushing Financial go up and down completely randomly.

Pair Corralation between Brookline Bancorp and Flushing Financial

Given the investment horizon of 90 days Brookline Bancorp is expected to generate 0.89 times more return on investment than Flushing Financial. However, Brookline Bancorp is 1.13 times less risky than Flushing Financial. It trades about -0.02 of its potential returns per unit of risk. Flushing Financial is currently generating about -0.04 per unit of risk. If you would invest  1,049  in Brookline Bancorp on May 6, 2025 and sell it today you would lose (30.00) from holding Brookline Bancorp or give up 2.86% of portfolio value over 90 days.

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

Brookline Bancorp  vs.  Flushing Financial

Brookline Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Brookline Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Brookline Bancorp is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Flushing Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flushing Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, Flushing Financial is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Brookline Bancorp and Flushing Financial

The main advantage of trading using opposite Brookline Bancorp and Flushing Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookline Bancorp position performs unexpectedly, Flushing Financial 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 Flushing Financial will offset losses from the drop in Flushing Financial's long position.

The idea behind Brookline Bancorp and Flushing Financial 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.