Correlation Between Brpr Corporate and Bread Financial
Can any of the company-specific risk be diversified away by investing in both Brpr Corporate and Bread Financial 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 Brpr Corporate and Bread Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brpr Corporate Offices and Bread Financial Holdings, you can compare the effects of market volatilities on Brpr Corporate and Bread Financial 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 Brpr Corporate with a short position of Bread Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brpr Corporate and Bread Financial.
Diversification Opportunities for Brpr Corporate and Bread Financial
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Brpr and Bread is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Brpr Corporate Offices and Bread Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bread Financial Holdings and Brpr Corporate 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 Brpr Corporate Offices are associated (or correlated) with Bread Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bread Financial Holdings has no effect on the direction of Brpr Corporate i.e., Brpr Corporate and Bread Financial go up and down completely randomly.
Pair Corralation between Brpr Corporate and Bread Financial
Assuming the 90 days trading horizon Brpr Corporate Offices is expected to generate 0.75 times more return on investment than Bread Financial. However, Brpr Corporate Offices is 1.33 times less risky than Bread Financial. It trades about 0.18 of its potential returns per unit of risk. Bread Financial Holdings is currently generating about -0.03 per unit of risk. If you would invest 4,210 in Brpr Corporate Offices on November 7, 2024 and sell it today you would earn a total of 395.00 from holding Brpr Corporate Offices or generate 9.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Brpr Corporate Offices vs. Bread Financial Holdings
Performance |
| Timeline |
| Brpr Corporate Offices |
| Bread Financial Holdings |
Brpr Corporate and Bread Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brpr Corporate and Bread Financial
The main advantage of trading using opposite Brpr Corporate and Bread Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brpr Corporate position performs unexpectedly, Bread Financial 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 Bread Financial will offset losses from the drop in Bread Financial's long position.| Brpr Corporate vs. Taiwan Semiconductor Manufacturing | Brpr Corporate vs. Apple Inc | Brpr Corporate vs. Alibaba Group Holding | Brpr Corporate vs. Microsoft |
| Bread Financial vs. Visa Inc | Bread Financial vs. Mastercard Incorporated | Bread Financial vs. American Express | Bread Financial vs. PayPal Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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