Correlation Between LINKBANCORP and Banco Bradesco
Can any of the company-specific risk be diversified away by investing in both LINKBANCORP 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 LINKBANCORP and Banco Bradesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LINKBANCORP and Banco Bradesco SA, you can compare the effects of market volatilities on LINKBANCORP 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 LINKBANCORP with a short position of Banco Bradesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of LINKBANCORP and Banco Bradesco.
Diversification Opportunities for LINKBANCORP and Banco Bradesco
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LINKBANCORP and Banco is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding LINKBANCORP 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 LINKBANCORP 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 LINKBANCORP 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 LINKBANCORP i.e., LINKBANCORP and Banco Bradesco go up and down completely randomly.
Pair Corralation between LINKBANCORP and Banco Bradesco
Given the investment horizon of 90 days LINKBANCORP is expected to generate 1.48 times more return on investment than Banco Bradesco. However, LINKBANCORP is 1.48 times more volatile than Banco Bradesco SA. It trades about 0.29 of its potential returns per unit of risk. Banco Bradesco SA is currently generating about -0.23 per unit of risk. If you would invest 655.00 in LINKBANCORP on August 27, 2024 and sell it today you would earn a total of 108.00 from holding LINKBANCORP or generate 16.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LINKBANCORP vs. Banco Bradesco SA
Performance |
| Timeline |
| LINKBANCORP |
| Banco Bradesco SA |
LINKBANCORP and Banco Bradesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LINKBANCORP and Banco Bradesco
The main advantage of trading using opposite LINKBANCORP and Banco Bradesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LINKBANCORP 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.| LINKBANCORP vs. Home Federal Bancorp | LINKBANCORP vs. Lake Shore Bancorp | LINKBANCORP vs. Community West Bancshares | LINKBANCORP vs. Magyar 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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