Correlation Between Bankwell Financial and B Communications
Can any of the company-specific risk be diversified away by investing in both Bankwell Financial and B Communications 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 Bankwell Financial and B Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bankwell Financial Group and B Communications, you can compare the effects of market volatilities on Bankwell Financial and B Communications 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 Bankwell Financial with a short position of B Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bankwell Financial and B Communications.
Diversification Opportunities for Bankwell Financial and B Communications
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bankwell and BCOMF is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bankwell Financial Group and B Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Communications and Bankwell Financial 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 Bankwell Financial Group are associated (or correlated) with B Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Communications has no effect on the direction of Bankwell Financial i.e., Bankwell Financial and B Communications go up and down completely randomly.
Pair Corralation between Bankwell Financial and B Communications
Given the investment horizon of 90 days Bankwell Financial is expected to generate 1.87 times less return on investment than B Communications. In addition to that, Bankwell Financial is 1.22 times more volatile than B Communications. It trades about 0.08 of its total potential returns per unit of risk. B Communications is currently generating about 0.19 per unit of volatility. If you would invest 669.00 in B Communications on September 10, 2025 and sell it today you would earn a total of 106.00 from holding B Communications or generate 15.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bankwell Financial Group vs. B Communications
Performance |
| Timeline |
| Bankwell Financial |
| B Communications |
Bankwell Financial and B Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bankwell Financial and B Communications
The main advantage of trading using opposite Bankwell Financial and B Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bankwell Financial position performs unexpectedly, B Communications 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 B Communications will offset losses from the drop in B Communications' long position.| Bankwell Financial vs. US Century Bank | Bankwell Financial vs. RBB Bancorp | Bankwell Financial vs. Orange County Bancorp | Bankwell Financial vs. Farmers Merchants Bancorp |
| B Communications vs. NorthPoint Communications Group | B Communications vs. Asia Global Crossing | B Communications vs. Rediff India | B Communications vs. Celexpress |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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