Correlation Between Aesapar Fundo and Banestes
Can any of the company-specific risk be diversified away by investing in both Aesapar Fundo and Banestes 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 Aesapar Fundo and Banestes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aesapar Fundo de and Banestes SA , you can compare the effects of market volatilities on Aesapar Fundo and Banestes 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 Aesapar Fundo with a short position of Banestes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aesapar Fundo and Banestes.
Diversification Opportunities for Aesapar Fundo and Banestes
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aesapar and Banestes is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Aesapar Fundo de and Banestes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banestes SA and Aesapar Fundo 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 Aesapar Fundo de are associated (or correlated) with Banestes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banestes SA has no effect on the direction of Aesapar Fundo i.e., Aesapar Fundo and Banestes go up and down completely randomly.
Pair Corralation between Aesapar Fundo and Banestes
Assuming the 90 days trading horizon Aesapar Fundo de is expected to under-perform the Banestes. In addition to that, Aesapar Fundo is 2.77 times more volatile than Banestes SA . It trades about -0.16 of its total potential returns per unit of risk. Banestes SA is currently generating about -0.35 per unit of volatility. If you would invest 870.00 in Banestes SA on August 28, 2024 and sell it today you would lose (34.00) from holding Banestes SA or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aesapar Fundo de vs. Banestes SA
Performance |
| Timeline |
| Aesapar Fundo de |
| Banestes SA |
Aesapar Fundo and Banestes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aesapar Fundo and Banestes
The main advantage of trading using opposite Aesapar Fundo and Banestes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aesapar Fundo position performs unexpectedly, Banestes 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 Banestes will offset losses from the drop in Banestes' long position.| Aesapar Fundo vs. BTG Pactual Logstica | Aesapar Fundo vs. Plano Plano Desenvolvimento | Aesapar Fundo vs. Companhia Habitasul de | Aesapar Fundo vs. The Procter Gamble |
| Banestes vs. Banestes SA | Banestes vs. Banco da Amaznia | Banestes vs. Banco ABC Brasil | Banestes vs. Banco do Estado |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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