Correlation Between Banco Do and Susquehanna Community
Can any of the company-specific risk be diversified away by investing in both Banco Do and Susquehanna Community 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 Banco Do and Susquehanna Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco do Brasil and Susquehanna Community Financial, you can compare the effects of market volatilities on Banco Do and Susquehanna Community 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 Banco Do with a short position of Susquehanna Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Do and Susquehanna Community.
Diversification Opportunities for Banco Do and Susquehanna Community
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banco and Susquehanna is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Banco do Brasil and Susquehanna Community Financia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susquehanna Community and Banco Do 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 Banco do Brasil are associated (or correlated) with Susquehanna Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susquehanna Community has no effect on the direction of Banco Do i.e., Banco Do and Susquehanna Community go up and down completely randomly.
Pair Corralation between Banco Do and Susquehanna Community
Assuming the 90 days trading horizon Banco Do is expected to generate 1.8 times less return on investment than Susquehanna Community. But when comparing it to its historical volatility, Banco do Brasil is 2.41 times less risky than Susquehanna Community. It trades about 0.03 of its potential returns per unit of risk. Susquehanna Community Financial is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,211 in Susquehanna Community Financial on October 26, 2024 and sell it today you would earn a total of 28.00 from holding Susquehanna Community Financial or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco do Brasil vs. Susquehanna Community Financia
Performance |
| Timeline |
| Banco do Brasil |
| Susquehanna Community |
Banco Do and Susquehanna Community Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Do and Susquehanna Community
The main advantage of trading using opposite Banco Do and Susquehanna Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Do position performs unexpectedly, Susquehanna Community 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 Susquehanna Community will offset losses from the drop in Susquehanna Community's long position.| Banco Do vs. Banco Bradesco SA | Banco Do vs. Petrleo Brasileiro SA | Banco Do vs. Ita Unibanco Holding | Banco Do vs. Itasa Investimentos |
| Susquehanna Community vs. CCFNB Bancorp | Susquehanna Community vs. Mifflinburg Bancorp | Susquehanna Community vs. Woodlands Financial Services | Susquehanna Community vs. Penns Woods Bancorp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |