Correlation Between Banco Bradesco and Farmers
Can any of the company-specific risk be diversified away by investing in both Banco Bradesco and Farmers 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 Bradesco and Farmers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Bradesco SA and Farmers And Merchants, you can compare the effects of market volatilities on Banco Bradesco and Farmers 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 Bradesco with a short position of Farmers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Bradesco and Farmers.
Diversification Opportunities for Banco Bradesco and Farmers
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and Farmers is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bradesco SA and Farmers And Merchants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers And Merchants and Banco Bradesco 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 Bradesco SA are associated (or correlated) with Farmers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers And Merchants has no effect on the direction of Banco Bradesco i.e., Banco Bradesco and Farmers go up and down completely randomly.
Pair Corralation between Banco Bradesco and Farmers
Considering the 90-day investment horizon Banco Bradesco SA is expected to under-perform the Farmers. In addition to that, Banco Bradesco is 2.53 times more volatile than Farmers And Merchants. It trades about -0.22 of its total potential returns per unit of risk. Farmers And Merchants is currently generating about 0.35 per unit of volatility. If you would invest 496,091 in Farmers And Merchants on September 3, 2024 and sell it today you would earn a total of 81,809 from holding Farmers And Merchants or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Bradesco SA vs. Farmers And Merchants
Performance |
| Timeline |
| Banco Bradesco SA |
| Farmers And Merchants |
Banco Bradesco and Farmers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Bradesco and Farmers
The main advantage of trading using opposite Banco Bradesco and Farmers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Bradesco position performs unexpectedly, Farmers 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 Farmers will offset losses from the drop in Farmers' long position.| Banco Bradesco vs. Banco Santander Brasil | Banco Bradesco vs. Banco Macro SA | Banco Bradesco vs. Lloyds Banking Group | Banco Bradesco vs. Grupo Financiero Galicia |
| Farmers vs. First National Bank | Farmers vs. Farmers Merchants Bancorp | Farmers vs. Exchange Bank | Farmers vs. First National of |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |