Correlation Between Brookline Bancorp and Banco Bradesco
Can any of the company-specific risk be diversified away by investing in both Brookline Bancorp 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 Brookline Bancorp and Banco Bradesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookline Bancorp and Banco Bradesco SA, you can compare the effects of market volatilities on Brookline Bancorp 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 Brookline Bancorp with a short position of Banco Bradesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookline Bancorp and Banco Bradesco.
Diversification Opportunities for Brookline Bancorp and Banco Bradesco
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brookline and Banco is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Brookline Bancorp 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 Brookline Bancorp 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 Brookline Bancorp 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 Brookline Bancorp i.e., Brookline Bancorp and Banco Bradesco go up and down completely randomly.
Pair Corralation between Brookline Bancorp and Banco Bradesco
Given the investment horizon of 90 days Brookline Bancorp is expected to generate 2.05 times less return on investment than Banco Bradesco. But when comparing it to its historical volatility, Brookline Bancorp is 1.12 times less risky than Banco Bradesco. It trades about 0.14 of its potential returns per unit of risk. Banco Bradesco SA is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 170.00 in Banco Bradesco SA on October 20, 2024 and sell it today you would earn a total of 14.00 from holding Banco Bradesco SA or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Brookline Bancorp vs. Banco Bradesco SA
Performance |
| Timeline |
| Brookline Bancorp |
| Banco Bradesco SA |
Brookline Bancorp and Banco Bradesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookline Bancorp and Banco Bradesco
The main advantage of trading using opposite Brookline Bancorp and Banco Bradesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookline Bancorp 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.| Brookline Bancorp vs. Heritage Commerce Corp | Brookline Bancorp vs. Eastern Bankshares | Brookline Bancorp vs. HarborOne Bancorp | Brookline Bancorp vs. Kearny Financial Corp |
| Banco Bradesco vs. Home Federal Bancorp | Banco Bradesco vs. LINKBANCORP | Banco Bradesco vs. Affinity Bancshares | Banco Bradesco vs. Southern California 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |