Correlation Between Bar Harbor and Bank First
Can any of the company-specific risk be diversified away by investing in both Bar Harbor and Bank First 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 Bar Harbor and Bank First into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bar Harbor Bankshares and Bank First National, you can compare the effects of market volatilities on Bar Harbor and Bank First 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 Bar Harbor with a short position of Bank First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bar Harbor and Bank First.
Diversification Opportunities for Bar Harbor and Bank First
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bar and Bank is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bar Harbor Bankshares and Bank First National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank First National and Bar Harbor 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 Bar Harbor Bankshares are associated (or correlated) with Bank First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank First National has no effect on the direction of Bar Harbor i.e., Bar Harbor and Bank First go up and down completely randomly.
Pair Corralation between Bar Harbor and Bank First
Considering the 90-day investment horizon Bar Harbor Bankshares is expected to generate 0.94 times more return on investment than Bank First. However, Bar Harbor Bankshares is 1.06 times less risky than Bank First. It trades about 0.12 of its potential returns per unit of risk. Bank First National is currently generating about 0.05 per unit of risk. If you would invest 2,483 in Bar Harbor Bankshares on December 29, 2023 and sell it today you would earn a total of 110.00 from holding Bar Harbor Bankshares or generate 4.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bar Harbor Bankshares vs. Bank First National
Performance |
Timeline |
Bar Harbor Bankshares |
Bank First National |
Bar Harbor and Bank First Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bar Harbor and Bank First
The main advantage of trading using opposite Bar Harbor and Bank First positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bar Harbor position performs unexpectedly, Bank First 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 Bank First will offset losses from the drop in Bank First's long position.Bar Harbor vs. Merchants Bancorp | Bar Harbor vs. Axos Financial | Bar Harbor vs. Regions Financial | Bar Harbor vs. Regions Financial |
Bank First vs. Merchants Bancorp | Bank First vs. Axos Financial | Bank First vs. Regions Financial | Bank First vs. Regions 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Stocks Directory Find actively traded stocks across global markets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |