Correlation Between Bangkok Bank and Banco Bradesco
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and Banco Bradesco 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 Bangkok Bank and Banco Bradesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Bank Public and Banco Bradesco SA, you can compare the effects of market volatilities on Bangkok Bank and Banco Bradesco 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 Bangkok Bank with a short position of Banco Bradesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and Banco Bradesco.
Diversification Opportunities for Bangkok Bank and Banco Bradesco
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bangkok and Banco is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and Banco Bradesco SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Bradesco SA and Bangkok Bank 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 Bangkok Bank Public are associated (or correlated) with Banco Bradesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Bradesco SA has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and Banco Bradesco go up and down completely randomly.
Pair Corralation between Bangkok Bank and Banco Bradesco
Assuming the 90 days horizon Bangkok Bank Public is expected to generate 1.65 times more return on investment than Banco Bradesco. However, Bangkok Bank is 1.65 times more volatile than Banco Bradesco SA. It trades about 0.01 of its potential returns per unit of risk. Banco Bradesco SA is currently generating about -0.07 per unit of risk. If you would invest 399.00 in Bangkok Bank Public on September 23, 2024 and sell it today you would lose (27.00) from holding Bangkok Bank Public or give up 6.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 68.15% |
| Values | Daily Returns |
Bangkok Bank Public vs. Banco Bradesco SA
Performance |
| Timeline |
| Bangkok Bank Public |
| Banco Bradesco SA |
Bangkok Bank and Banco Bradesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and Banco Bradesco
The main advantage of trading using opposite Bangkok Bank and Banco Bradesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, Banco Bradesco 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 Bradesco will offset losses from the drop in Banco Bradesco's long position.| Bangkok Bank vs. Banco Bradesco SA | Bangkok Bank vs. Itau Unibanco Banco | Bangkok Bank vs. Lloyds Banking Group | Bangkok Bank vs. Deutsche Bank AG |
| Banco Bradesco vs. Shinhan Financial Group | Banco Bradesco vs. KB Financial Group | Banco Bradesco vs. Banco De Chile | Banco Bradesco vs. Orix Corp Ads |
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 CEOs Directory module to screen CEOs from public companies around the world.
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