Correlation Between Luther Burbank and Banco Bradesco
Can any of the company-specific risk be diversified away by investing in both Luther Burbank 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 Luther Burbank and Banco Bradesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luther Burbank and Banco Bradesco SA, you can compare the effects of market volatilities on Luther Burbank 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 Luther Burbank with a short position of Banco Bradesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luther Burbank and Banco Bradesco.
Diversification Opportunities for Luther Burbank and Banco Bradesco
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Luther and Banco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Luther Burbank 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 Luther Burbank 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 Luther Burbank 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 Luther Burbank i.e., Luther Burbank and Banco Bradesco go up and down completely randomly.
Pair Corralation between Luther Burbank and Banco Bradesco
If you would invest 176.00 in Banco Bradesco SA on November 4, 2024 and sell it today you would earn a total of 22.00 from holding Banco Bradesco SA or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Luther Burbank vs. Banco Bradesco SA
Performance |
| Timeline |
| Luther Burbank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Banco Bradesco SA |
Luther Burbank and Banco Bradesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luther Burbank and Banco Bradesco
The main advantage of trading using opposite Luther Burbank and Banco Bradesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luther Burbank 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.| Luther Burbank vs. First Community | Luther Burbank vs. Community West Bancshares | Luther Burbank vs. First Financial Northwest | Luther Burbank vs. First Northwest Bancorp |
| Banco Bradesco vs. Home Federal Bancorp | Banco Bradesco vs. LINKBANCORP | Banco Bradesco vs. Affinity Bancshares | Banco Bradesco vs. Southern California Bancorp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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