Correlation Between Fundamental Global and BB Seguridade
Can any of the company-specific risk be diversified away by investing in both Fundamental Global and BB Seguridade 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 Fundamental Global and BB Seguridade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fundamental Global and BB Seguridade Participacoes, you can compare the effects of market volatilities on Fundamental Global and BB Seguridade 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 Fundamental Global with a short position of BB Seguridade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fundamental Global and BB Seguridade.
Diversification Opportunities for Fundamental Global and BB Seguridade
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fundamental and BBSEY is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fundamental Global and BB Seguridade Participacoes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Seguridade Partic and Fundamental Global 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 Fundamental Global are associated (or correlated) with BB Seguridade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Seguridade Partic has no effect on the direction of Fundamental Global i.e., Fundamental Global and BB Seguridade go up and down completely randomly.
Pair Corralation between Fundamental Global and BB Seguridade
Considering the 90-day investment horizon Fundamental Global is expected to under-perform the BB Seguridade. In addition to that, Fundamental Global is 3.65 times more volatile than BB Seguridade Participacoes. It trades about 0.0 of its total potential returns per unit of risk. BB Seguridade Participacoes is currently generating about 0.03 per unit of volatility. If you would invest 633.00 in BB Seguridade Participacoes on November 9, 2024 and sell it today you would earn a total of 52.00 from holding BB Seguridade Participacoes or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fundamental Global vs. BB Seguridade Participacoes
Performance |
| Timeline |
| Fundamental Global |
| BB Seguridade Partic |
Fundamental Global and BB Seguridade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fundamental Global and BB Seguridade
The main advantage of trading using opposite Fundamental Global and BB Seguridade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fundamental Global position performs unexpectedly, BB Seguridade 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 BB Seguridade will offset losses from the drop in BB Seguridade's long position.| Fundamental Global vs. International General Insurance | Fundamental Global vs. BB Seguridade Participacoes | Fundamental Global vs. Goosehead Insurance | Fundamental Global vs. Enstar Group Limited |
| BB Seguridade vs. Assicurazioni Generali SpA | BB Seguridade vs. Athene Holding | BB Seguridade vs. ageas SANV | BB Seguridade vs. Athene Holding |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |