Correlation Between Cohen and Banco Bradesco
Can any of the company-specific risk be diversified away by investing in both Cohen 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 Cohen and Banco Bradesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Company and Banco Bradesco SA, you can compare the effects of market volatilities on Cohen 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 Cohen with a short position of Banco Bradesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and Banco Bradesco.
Diversification Opportunities for Cohen and Banco Bradesco
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cohen and Banco is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Company 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 Cohen 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 Cohen Company 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 Cohen i.e., Cohen and Banco Bradesco go up and down completely randomly.
Pair Corralation between Cohen and Banco Bradesco
Given the investment horizon of 90 days Cohen Company is expected to generate 1.29 times more return on investment than Banco Bradesco. However, Cohen is 1.29 times more volatile than Banco Bradesco SA. It trades about 0.17 of its potential returns per unit of risk. Banco Bradesco SA is currently generating about -0.31 per unit of risk. If you would invest 967.00 in Cohen Company on September 18, 2024 and sell it today you would earn a total of 108.00 from holding Cohen Company or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Company vs. Banco Bradesco SA
Performance |
| Timeline |
| Cohen Company |
| Banco Bradesco SA |
Cohen and Banco Bradesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen and Banco Bradesco
The main advantage of trading using opposite Cohen and Banco Bradesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen 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.| Cohen vs. Banco Bradesco SA | Cohen vs. Itau Unibanco Banco | Cohen vs. Banco Santander Brasil | Cohen vs. Western Alliance Bancorporation |
| Banco Bradesco vs. CrossFirst Bankshares | Banco Bradesco vs. Banco Bradesco SA | Banco Bradesco vs. CF Bankshares | Banco Bradesco vs. Grupo Aval |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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