Correlation Between Washington Trust and BayCom Corp
Can any of the company-specific risk be diversified away by investing in both Washington Trust 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 Washington Trust and BayCom Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Washington Trust Bancorp and BayCom Corp, you can compare the effects of market volatilities on Washington Trust 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 Washington Trust with a short position of BayCom Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Washington Trust and BayCom Corp.
Diversification Opportunities for Washington Trust and BayCom Corp
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Washington and BayCom is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Washington Trust Bancorp and BayCom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BayCom Corp and Washington Trust 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 Washington Trust 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 Washington Trust i.e., Washington Trust and BayCom Corp go up and down completely randomly.
Pair Corralation between Washington Trust and BayCom Corp
Given the investment horizon of 90 days Washington Trust is expected to generate 1.22 times less return on investment than BayCom Corp. But when comparing it to its historical volatility, Washington Trust Bancorp is 1.04 times less risky than BayCom Corp. It trades about 0.1 of its potential returns per unit of risk. BayCom Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,672 in BayCom Corp on June 7, 2025 and sell it today you would earn a total of 335.00 from holding BayCom Corp or generate 12.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Washington Trust Bancorp vs. BayCom Corp
Performance |
| Timeline |
| Washington Trust Bancorp |
| BayCom Corp |
Washington Trust and BayCom Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Washington Trust and BayCom Corp
The main advantage of trading using opposite Washington Trust and BayCom Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Washington Trust 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.| Washington Trust vs. Home Federal Bancorp | Washington Trust vs. Magyar Bancorp | Washington Trust vs. Lake Shore Bancorp | Washington Trust vs. Old Point Financial |
| BayCom Corp vs. Affinity Bancshares | BayCom Corp vs. Northeast Community Bancorp | BayCom Corp vs. Bayfirst Financial Corp | BayCom Corp vs. Southern California Bancorp |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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