Correlation Between Mineralys Therapeutics, and Bankwell Financial

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

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

Diversification Opportunities for Mineralys Therapeutics, and Bankwell Financial

-0.48

Correlation Coefficient

Mineralys Therapeutics,  Bankwell Financial

Very good diversification

The 3 months correlation between Mineralys and Bankwell is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Mineralys Therapeutics, Common and Bankwell Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankwell Financial and Mineralys Therapeutics, 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 Mineralys Therapeutics, Common are associated (or correlated) with Bankwell Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankwell Financial has no effect on the direction of Mineralys Therapeutics, i.e., Mineralys Therapeutics, and Bankwell Financial go up and down completely randomly.

Pair Corralation between Mineralys Therapeutics, and Bankwell Financial

Given the investment horizon of 90 days Mineralys Therapeutics, Common is expected to under-perform the Bankwell Financial. In addition to that, Mineralys Therapeutics, is 1.75 times more volatile than Bankwell Financial Group. It trades about -0.04 of its total potential returns per unit of risk. Bankwell Financial Group is currently generating about 0.16 per unit of volatility. If you would invest  3,325  in Bankwell Financial Group on May 6, 2025 and sell it today you would earn a total of  584.00  from holding Bankwell Financial Group or generate 17.56% return on investment over 90 days.

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

Mineralys Therapeutics, Common  vs.  Bankwell Financial Group

Mineralys Therapeutics,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mineralys Therapeutics, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Bankwell Financial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bankwell Financial Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Bankwell Financial reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mineralys Therapeutics, and Bankwell Financial

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

The idea behind Mineralys Therapeutics, Common and Bankwell Financial Group 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.