Correlation Between Baumer SA and Banco Alfa
Can any of the company-specific risk be diversified away by investing in both Baumer SA and Banco Alfa 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 Baumer SA and Banco Alfa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baumer SA and Banco Alfa de, you can compare the effects of market volatilities on Baumer SA and Banco Alfa 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 Baumer SA with a short position of Banco Alfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baumer SA and Banco Alfa.
Diversification Opportunities for Baumer SA and Banco Alfa
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Baumer and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Baumer SA and Banco Alfa de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Alfa de and Baumer SA 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 Baumer SA are associated (or correlated) with Banco Alfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Alfa de has no effect on the direction of Baumer SA i.e., Baumer SA and Banco Alfa go up and down completely randomly.
Pair Corralation between Baumer SA and Banco Alfa
If you would invest 1,254 in Banco Alfa de on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Banco Alfa de or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baumer SA vs. Banco Alfa de
Performance |
| Timeline |
| Baumer SA |
| Banco Alfa de |
Baumer SA and Banco Alfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baumer SA and Banco Alfa
The main advantage of trading using opposite Baumer SA and Banco Alfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baumer SA position performs unexpectedly, Banco Alfa 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 Banco Alfa will offset losses from the drop in Banco Alfa's long position.| Baumer SA vs. Autohome | Baumer SA vs. Telecomunicaes Brasileiras SA | Baumer SA vs. Unifique Telecomunicaes SA | Baumer SA vs. salesforce inc |
| Banco Alfa vs. Banco do Brasil | Banco Alfa vs. Banco Bradesco SA | Banco Alfa vs. Petrleo Brasileiro SA | Banco Alfa vs. BB Seguridade Participacoes |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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