Correlation Between Banco Bradesco and Teb Bancorp
Can any of the company-specific risk be diversified away by investing in both Banco Bradesco and Teb Bancorp 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 Teb Bancorp 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 Teb Bancorp, you can compare the effects of market volatilities on Banco Bradesco and Teb Bancorp 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 Teb Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Bradesco and Teb Bancorp.
Diversification Opportunities for Banco Bradesco and Teb Bancorp
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Banco and Teb is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bradesco SA and Teb Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teb Bancorp 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 Teb Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teb Bancorp has no effect on the direction of Banco Bradesco i.e., Banco Bradesco and Teb Bancorp go up and down completely randomly.
Pair Corralation between Banco Bradesco and Teb Bancorp
Considering the 90-day investment horizon Banco Bradesco SA is expected to under-perform the Teb Bancorp. But the stock apears to be less risky and, when comparing its historical volatility, Banco Bradesco SA is 2.24 times less risky than Teb Bancorp. The stock trades about -0.3 of its potential returns per unit of risk. The Teb Bancorp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 650.00 in Teb Bancorp on September 24, 2024 and sell it today you would earn a total of 148.00 from holding Teb Bancorp or generate 22.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Bradesco SA vs. Teb Bancorp
Performance |
| Timeline |
| Banco Bradesco SA |
| Teb Bancorp |
Banco Bradesco and Teb Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Bradesco and Teb Bancorp
The main advantage of trading using opposite Banco Bradesco and Teb Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Bradesco position performs unexpectedly, Teb Bancorp 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 Teb Bancorp will offset losses from the drop in Teb Bancorp's 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 |
| Teb Bancorp vs. Banco Bradesco SA | Teb Bancorp vs. Itau Unibanco Banco | Teb Bancorp vs. Lloyds Banking Group | Teb Bancorp vs. Deutsche Bank AG |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |