Correlation Between First Northwest and BayCom Corp

Can any of the company-specific risk be diversified away by investing in both First Northwest 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 First Northwest and BayCom Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for First Northwest and BayCom Corp

-0.65

Correlation Coefficient

First Northwest  BayCom Corp

Excellent diversification

The 3 months correlation between First and BayCom is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding First Northwest Bancorp and BayCom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BayCom Corp and First Northwest 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 First Northwest Bancorp 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 First Northwest i.e., First Northwest and BayCom Corp go up and down completely randomly.

Pair Corralation between First Northwest and BayCom Corp

Given the investment horizon of 90 days First Northwest Bancorp is expected to under-perform the BayCom Corp. In addition to that, First Northwest is 1.72 times more volatile than BayCom Corp. It trades about -0.19 of its total potential returns per unit of risk. BayCom Corp is currently generating about 0.11 per unit of volatility. If you would invest  2,591  in BayCom Corp on April 24, 2025 and sell it today you would earn a total of  263.00  from holding BayCom Corp or generate 10.15% return on investment over 90 days.

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

First Northwest Bancorp  vs.  BayCom Corp

First Northwest Bancorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days First Northwest Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

BayCom Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BayCom Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent primary indicators, BayCom Corp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with First Northwest and BayCom Corp

The main advantage of trading using opposite First Northwest and BayCom Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Northwest 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 First Northwest Bancorp 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.