Correlation Between Bank First and Bar Harbor

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bank First and Bar Harbor 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 Bank First and Bar Harbor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank First National and Bar Harbor Bankshares, you can compare the effects of market volatilities on Bank First and Bar Harbor 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 Bank First with a short position of Bar Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank First and Bar Harbor.

Diversification Opportunities for Bank First and Bar Harbor

0.12
  Correlation Coefficient

Average diversification

The 3 months correlation between Bank First and Bar Harbor is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bank First National and Bar Harbor Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bar Harbor Bankshares and Bank First 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 Bank First National are associated (or correlated) with Bar Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bar Harbor Bankshares has no effect on the direction of Bank First i.e., Bank First and Bar Harbor go up and down completely randomly.

Pair Corralation between Bank First and Bar Harbor

Considering the 90-day investment horizon Bank First National is expected to generate 0.6 times more return on investment than Bar Harbor. However, Bank First National is 1.66 times less risky than Bar Harbor. It trades about 0.06 of its potential returns per unit of risk. Bar Harbor Bankshares is currently generating about -0.02 per unit of risk. If you would invest  7,127  in Bank First National on April 4, 2022 and sell it today you would earn a total of  545.00  from holding Bank First National or generate 7.65% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Bank First National  vs.  Bar Harbor Bankshares

 Performance (%) 
      Timeline 
Bank First National 
Bank First Performance
6 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bank First National are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain technical and fundamental indicators, Bank First may actually be approaching a critical reversion point that can send shares even higher in August 2022.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0115
Payout Ratio
0.2
Last Split Factor
2:1
Forward Annual Dividend Rate
0.88
Dividend Date
2022-07-06
Ex Dividend Date
2022-06-21
Last Split Date
2002-10-21

Bank First Price Channel

Bar Harbor Bankshares 
Bar Harbor Performance
0 of 100
Over the last 90 days Bar Harbor Bankshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, Bar Harbor is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Structure and Payout Changes

Forward Annual Dividend Yield
0.0393
Payout Ratio
0.37
Last Split Factor
3:2
Forward Annual Dividend Rate
1.04
Dividend Date
2022-06-17
Ex Dividend Date
2022-05-16
Last Split Date
2017-03-22

Bar Harbor Price Channel

Bank First and Bar Harbor Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Bank First and Bar Harbor

The main advantage of trading using opposite Bank First and Bar Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank First position performs unexpectedly, Bar Harbor 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 Bar Harbor will offset losses from the drop in Bar Harbor's long position.
The idea behind Bank First National and Bar Harbor Bankshares 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 Shere Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go