Correlation Between Bridgewater Bancshares and Amalgamated Bank
Can any of the company-specific risk be diversified away by investing in both Bridgewater Bancshares and Amalgamated Bank 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 Bridgewater Bancshares and Amalgamated Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bridgewater Bancshares and Amalgamated Bank, you can compare the effects of market volatilities on Bridgewater Bancshares and Amalgamated Bank 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 Bridgewater Bancshares with a short position of Amalgamated Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bridgewater Bancshares and Amalgamated Bank.
Diversification Opportunities for Bridgewater Bancshares and Amalgamated Bank
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bridgewater and Amalgamated is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bridgewater Bancshares and Amalgamated Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amalgamated Bank and Bridgewater Bancshares 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 Bridgewater Bancshares are associated (or correlated) with Amalgamated Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amalgamated Bank has no effect on the direction of Bridgewater Bancshares i.e., Bridgewater Bancshares and Amalgamated Bank go up and down completely randomly.
Pair Corralation between Bridgewater Bancshares and Amalgamated Bank
Considering the 90-day investment horizon Bridgewater Bancshares is expected to generate 1.1 times more return on investment than Amalgamated Bank. However, Bridgewater Bancshares is 1.1 times more volatile than Amalgamated Bank. It trades about 0.05 of its potential returns per unit of risk. Amalgamated Bank is currently generating about -0.01 per unit of risk. If you would invest 1,579 in Bridgewater Bancshares on August 17, 2025 and sell it today you would earn a total of 97.00 from holding Bridgewater Bancshares or generate 6.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bridgewater Bancshares vs. Amalgamated Bank
Performance |
| Timeline |
| Bridgewater Bancshares |
| Amalgamated Bank |
Bridgewater Bancshares and Amalgamated Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bridgewater Bancshares and Amalgamated Bank
The main advantage of trading using opposite Bridgewater Bancshares and Amalgamated Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bridgewater Bancshares position performs unexpectedly, Amalgamated Bank 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 Amalgamated Bank will offset losses from the drop in Amalgamated Bank's long position.| Bridgewater Bancshares vs. Capital Bancorp | Bridgewater Bancshares vs. Peoples Fin | Bridgewater Bancshares vs. Red River Bancshares | Bridgewater Bancshares vs. Unity Bancorp |
| Amalgamated Bank vs. Dime Community Bancshares | Amalgamated Bank vs. Hanmi Financial | Amalgamated Bank vs. First Mid Illinois | Amalgamated Bank vs. Burke Herbert Financial |
Check out your portfolio center.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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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