Correlation Between Transmissora Aliana and BB Seguridade
Can any of the company-specific risk be diversified away by investing in both Transmissora Aliana and BB Seguridade 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 Transmissora Aliana and BB Seguridade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transmissora Aliana de and BB Seguridade Participacoes, you can compare the effects of market volatilities on Transmissora Aliana and BB Seguridade 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 Transmissora Aliana with a short position of BB Seguridade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transmissora Aliana and BB Seguridade.
Diversification Opportunities for Transmissora Aliana and BB Seguridade
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Transmissora and BBSE3 is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Transmissora Aliana de and BB Seguridade Participacoes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Seguridade Partic and Transmissora Aliana 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 Transmissora Aliana de are associated (or correlated) with BB Seguridade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Seguridade Partic has no effect on the direction of Transmissora Aliana i.e., Transmissora Aliana and BB Seguridade go up and down completely randomly.
Pair Corralation between Transmissora Aliana and BB Seguridade
Assuming the 90 days trading horizon Transmissora Aliana de is expected to generate 0.86 times more return on investment than BB Seguridade. However, Transmissora Aliana de is 1.16 times less risky than BB Seguridade. It trades about -0.03 of its potential returns per unit of risk. BB Seguridade Participacoes is currently generating about -0.06 per unit of risk. If you would invest 3,452 in Transmissora Aliana de on August 27, 2024 and sell it today you would lose (23.00) from holding Transmissora Aliana de or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transmissora Aliana de vs. BB Seguridade Participacoes
Performance |
| Timeline |
| Transmissora Aliana |
| BB Seguridade Partic |
Transmissora Aliana and BB Seguridade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transmissora Aliana and BB Seguridade
The main advantage of trading using opposite Transmissora Aliana and BB Seguridade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transmissora Aliana position performs unexpectedly, BB Seguridade 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 BB Seguridade will offset losses from the drop in BB Seguridade's long position.| Transmissora Aliana vs. BB Seguridade Participacoes | Transmissora Aliana vs. Engie Brasil Energia | Transmissora Aliana vs. CTEEP Companhia | Transmissora Aliana vs. Itasa Investimentos |
| BB Seguridade vs. Banco Alfa de | BB Seguridade vs. Financeira Alfa SA | BB Seguridade vs. Banco Alfa de | BB Seguridade vs. Financeira Alfa SA |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |