Correlation Between Grupo Supervielle and Banco Bradesco
Can any of the company-specific risk be diversified away by investing in both Grupo Supervielle 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 Grupo Supervielle and Banco Bradesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Supervielle SA and Banco Bradesco SA, you can compare the effects of market volatilities on Grupo Supervielle 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 Grupo Supervielle with a short position of Banco Bradesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Supervielle and Banco Bradesco.
Diversification Opportunities for Grupo Supervielle and Banco Bradesco
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grupo and Banco is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Supervielle SA 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 Grupo Supervielle 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 Grupo Supervielle SA 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 Grupo Supervielle i.e., Grupo Supervielle and Banco Bradesco go up and down completely randomly.
Pair Corralation between Grupo Supervielle and Banco Bradesco
Given the investment horizon of 90 days Grupo Supervielle SA is expected to under-perform the Banco Bradesco. In addition to that, Grupo Supervielle is 2.43 times more volatile than Banco Bradesco SA. It trades about -0.03 of its total potential returns per unit of risk. Banco Bradesco SA is currently generating about 0.29 per unit of volatility. If you would invest 181.00 in Banco Bradesco SA on November 5, 2024 and sell it today you would earn a total of 17.00 from holding Banco Bradesco SA or generate 9.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Supervielle SA vs. Banco Bradesco SA
Performance |
| Timeline |
| Grupo Supervielle |
| Banco Bradesco SA |
Grupo Supervielle and Banco Bradesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Supervielle and Banco Bradesco
The main advantage of trading using opposite Grupo Supervielle and Banco Bradesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Supervielle 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.| Grupo Supervielle vs. Grupo Financiero Galicia | Grupo Supervielle vs. BBVA Banco Frances | Grupo Supervielle vs. Itau Unibanco Banco | Grupo Supervielle vs. Banco Bradesco SA |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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