Correlation Between Evans Bancorp and Itau Unibanco
Can any of the company-specific risk be diversified away by investing in both Evans Bancorp and Itau Unibanco 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 Evans Bancorp and Itau Unibanco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evans Bancorp and Itau Unibanco Banco, you can compare the effects of market volatilities on Evans Bancorp and Itau Unibanco 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 Evans Bancorp with a short position of Itau Unibanco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evans Bancorp and Itau Unibanco.
Diversification Opportunities for Evans Bancorp and Itau Unibanco
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Evans and Itau is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Evans Bancorp and Itau Unibanco Banco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itau Unibanco Banco and Evans 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 Evans Bancorp are associated (or correlated) with Itau Unibanco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itau Unibanco Banco has no effect on the direction of Evans Bancorp i.e., Evans Bancorp and Itau Unibanco go up and down completely randomly.
Pair Corralation between Evans Bancorp and Itau Unibanco
Given the investment horizon of 90 days Evans Bancorp is expected to under-perform the Itau Unibanco. But the stock apears to be less risky and, when comparing its historical volatility, Evans Bancorp is 1.53 times less risky than Itau Unibanco. The stock trades about -0.02 of its potential returns per unit of risk. The Itau Unibanco Banco is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 566.00 in Itau Unibanco Banco on November 30, 2024 and sell it today you would lose (2.00) from holding Itau Unibanco Banco or give up 0.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Evans Bancorp vs. Itau Unibanco Banco
Performance |
Timeline |
Evans Bancorp |
Itau Unibanco Banco |
Evans Bancorp and Itau Unibanco Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Evans Bancorp and Itau Unibanco
The main advantage of trading using opposite Evans Bancorp and Itau Unibanco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evans Bancorp position performs unexpectedly, Itau Unibanco 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 Itau Unibanco will offset losses from the drop in Itau Unibanco's long position.Evans Bancorp vs. First Community | ||
Evans Bancorp vs. Oak Valley Bancorp | ||
Evans Bancorp vs. First Financial Northwest | ||
Evans Bancorp vs. ESSA Bancorp |
Itau Unibanco vs. Grupo Financiero Galicia | ||
Itau Unibanco vs. Banco Macro SA | ||
Itau Unibanco vs. Banco Santander Brasil | ||
Itau Unibanco vs. Lloyds Banking Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |