Correlation Between Bread Financial and SVB Financial
Can any of the company-specific risk be diversified away by investing in both Bread Financial and SVB Financial 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 Bread Financial and SVB Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bread Financial Holdings and SVB Financial Group, you can compare the effects of market volatilities on Bread Financial and SVB Financial 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 Bread Financial with a short position of SVB Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bread Financial and SVB Financial.
Diversification Opportunities for Bread Financial and SVB Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bread and SVB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bread Financial Holdings and SVB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB Financial Group and Bread 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 Bread Financial Holdings are associated (or correlated) with SVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB Financial Group has no effect on the direction of Bread Financial i.e., Bread Financial and SVB Financial go up and down completely randomly.
Pair Corralation between Bread Financial and SVB Financial
If you would invest 8,736 in Bread Financial Holdings on September 12, 2024 and sell it today you would earn a total of 1,094 from holding Bread Financial Holdings or generate 12.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bread Financial Holdings vs. SVB Financial Group
Performance |
| Timeline |
| Bread Financial Holdings |
| SVB Financial Group |
Bread Financial and SVB Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bread Financial and SVB Financial
The main advantage of trading using opposite Bread Financial and SVB Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bread Financial position performs unexpectedly, SVB Financial 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 SVB Financial will offset losses from the drop in SVB Financial's long position.| Bread Financial vs. Warner Music Group | Bread Financial vs. Tyson Foods | Bread Financial vs. STMicroelectronics NV | Bread Financial vs. Monster Beverage |
| SVB Financial vs. HDFC Bank Limited | SVB Financial vs. Ita Unibanco Holding | SVB Financial vs. Ita Unibanco Holding | SVB Financial vs. Deutsche Bank Aktiengesellschaft |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |