Correlation Between Bar Harbor and Bank First

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Bar Harbor Bankshares  vs.  Bank First National

 Performance 
       Timeline  
Bar Harbor Bankshares 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Bar Harbor Bankshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's technical indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Bank First National 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Bank First National has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Bank First is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

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.
The idea behind Bar Harbor Bankshares and Bank First National 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.
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