Correlation Between Finward Bancorp and Rhinebeck Bancorp

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

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

Diversification Opportunities for Finward Bancorp and Rhinebeck Bancorp

-0.17

Correlation Coefficient

Finward Bancorp  Rhinebeck Bancorp

Good diversification

The 3 months correlation between Finward and Rhinebeck is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Finward Bancorp and Rhinebeck Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rhinebeck Bancorp and Finward 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 Finward Bancorp are associated (or correlated) with Rhinebeck Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rhinebeck Bancorp has no effect on the direction of Finward Bancorp i.e., Finward Bancorp and Rhinebeck Bancorp go up and down completely randomly.

Pair Corralation between Finward Bancorp and Rhinebeck Bancorp

Given the investment horizon of 90 days Finward Bancorp is expected to generate 2.33 times less return on investment than Rhinebeck Bancorp. But when comparing it to its historical volatility, Finward Bancorp is 1.14 times less risky than Rhinebeck Bancorp. It trades about 0.07 of its potential returns per unit of risk. Rhinebeck Bancorp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,150  in Rhinebeck Bancorp on May 28, 2025 and sell it today you would earn a total of  206.00  from holding Rhinebeck Bancorp or generate 17.91% return on investment over 90 days.

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

Finward Bancorp  vs.  Rhinebeck Bancorp

Finward Bancorp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Finward Bancorp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Finward Bancorp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Rhinebeck Bancorp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rhinebeck Bancorp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady forward-looking signals, Rhinebeck Bancorp sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Finward Bancorp and Rhinebeck Bancorp

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

The idea behind Finward Bancorp and Rhinebeck Bancorp 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.