Correlation Between Banco Pan and Mitre Realty
Can any of the company-specific risk be diversified away by investing in both Banco Pan and Mitre Realty 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 Pan and Mitre Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Pan SA and Mitre Realty Empreendimentos, you can compare the effects of market volatilities on Banco Pan and Mitre Realty 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 Pan with a short position of Mitre Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Pan and Mitre Realty.
Diversification Opportunities for Banco Pan and Mitre Realty
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banco and Mitre is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Banco Pan SA and Mitre Realty Empreendimentos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitre Realty Empreen and Banco Pan 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 Pan SA are associated (or correlated) with Mitre Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitre Realty Empreen has no effect on the direction of Banco Pan i.e., Banco Pan and Mitre Realty go up and down completely randomly.
Pair Corralation between Banco Pan and Mitre Realty
Assuming the 90 days trading horizon Banco Pan is expected to generate 10.33 times less return on investment than Mitre Realty. But when comparing it to its historical volatility, Banco Pan SA is 1.22 times less risky than Mitre Realty. It trades about 0.0 of its potential returns per unit of risk. Mitre Realty Empreendimentos is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 301.00 in Mitre Realty Empreendimentos on October 21, 2024 and sell it today you would earn a total of 2.00 from holding Mitre Realty Empreendimentos or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banco Pan SA vs. Mitre Realty Empreendimentos
Performance |
| Timeline |
| Banco Pan SA |
| Mitre Realty Empreen |
Banco Pan and Mitre Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Pan and Mitre Realty
The main advantage of trading using opposite Banco Pan and Mitre Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Pan position performs unexpectedly, Mitre Realty 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 Mitre Realty will offset losses from the drop in Mitre Realty's long position.| Banco Pan vs. Banco BTG Pactual | Banco Pan vs. Eneva SA | Banco Pan vs. Oi SA | Banco Pan vs. Movida Participaes SA |
| Mitre Realty vs. Direcional Engenharia SA | Mitre Realty vs. Lojas Quero Quero SA | Mitre Realty vs. Eneva SA | Mitre Realty vs. Banco Pan SA |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |