Correlation Between Compa Sibiu and Patria Bank
Can any of the company-specific risk be diversified away by investing in both Compa Sibiu and Patria Bank 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 Compa Sibiu and Patria Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compa Sibiu and Patria Bank SA, you can compare the effects of market volatilities on Compa Sibiu and Patria Bank 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 Compa Sibiu with a short position of Patria Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compa Sibiu and Patria Bank.
Diversification Opportunities for Compa Sibiu and Patria Bank
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Compa and Patria is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Compa Sibiu and Patria Bank SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Bank SA and Compa Sibiu 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 Compa Sibiu are associated (or correlated) with Patria Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patria Bank SA has no effect on the direction of Compa Sibiu i.e., Compa Sibiu and Patria Bank go up and down completely randomly.
Pair Corralation between Compa Sibiu and Patria Bank
Assuming the 90 days trading horizon Compa Sibiu is expected to under-perform the Patria Bank. In addition to that, Compa Sibiu is 1.13 times more volatile than Patria Bank SA. It trades about -0.1 of its total potential returns per unit of risk. Patria Bank SA is currently generating about 0.01 per unit of volatility. If you would invest 8.10 in Patria Bank SA on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Patria Bank SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compa Sibiu vs. Patria Bank SA
Performance |
| Timeline |
| Compa Sibiu |
| Patria Bank SA |
Compa Sibiu and Patria Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compa Sibiu and Patria Bank
The main advantage of trading using opposite Compa Sibiu and Patria Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compa Sibiu position performs unexpectedly, Patria Bank 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 Patria Bank will offset losses from the drop in Patria Bank's long position.| Compa Sibiu vs. IM Vinaria Purcari | Compa Sibiu vs. TRANSILVANIA INVESTMENTS ALLIANCE | Compa Sibiu vs. Evergent Investments SA | Compa Sibiu vs. Safetech Innovations SA |
| Patria Bank vs. Erste Group Bank | Patria Bank vs. Digi Communications NV | Patria Bank vs. IHUNT TECHNOLOGY IMPORT EXPORT | Patria Bank vs. Safetech Innovations 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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