Correlation Between Itau Unibanco and Finwise Bancorp
Can any of the company-specific risk be diversified away by investing in both Itau Unibanco and Finwise Bancorp 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 Itau Unibanco and Finwise Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Itau Unibanco Banco and Finwise Bancorp, you can compare the effects of market volatilities on Itau Unibanco and Finwise Bancorp 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 Itau Unibanco with a short position of Finwise Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Itau Unibanco and Finwise Bancorp.
Diversification Opportunities for Itau Unibanco and Finwise Bancorp
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Itau and Finwise is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Itau Unibanco Banco and Finwise Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finwise Bancorp and Itau Unibanco 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 Itau Unibanco Banco are associated (or correlated) with Finwise Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finwise Bancorp has no effect on the direction of Itau Unibanco i.e., Itau Unibanco and Finwise Bancorp go up and down completely randomly.
Pair Corralation between Itau Unibanco and Finwise Bancorp
Given the investment horizon of 90 days Itau Unibanco Banco is expected to under-perform the Finwise Bancorp. In addition to that, Itau Unibanco is 1.02 times more volatile than Finwise Bancorp. It trades about -0.23 of its total potential returns per unit of risk. Finwise Bancorp is currently generating about 0.36 per unit of volatility. If you would invest 1,620 in Finwise Bancorp on August 28, 2024 and sell it today you would earn a total of 185.00 from holding Finwise Bancorp or generate 11.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Itau Unibanco Banco vs. Finwise Bancorp
Performance |
| Timeline |
| Itau Unibanco Banco |
| Finwise Bancorp |
Itau Unibanco and Finwise Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Itau Unibanco and Finwise Bancorp
The main advantage of trading using opposite Itau Unibanco and Finwise Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Itau Unibanco position performs unexpectedly, Finwise Bancorp 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 Finwise Bancorp will offset losses from the drop in Finwise Bancorp's long position.| Itau Unibanco vs. Grupo Financiero Galicia | Itau Unibanco vs. Banco Macro SA | Itau Unibanco vs. Banco Santander Brasil | Itau Unibanco vs. Lloyds Banking Group |
| Finwise Bancorp vs. Fifth Third Bancorp | Finwise Bancorp vs. Zions Bancorporation | Finwise Bancorp vs. Huntington Bancshares Incorporated | Finwise Bancorp vs. Comerica |
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..
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |