Correlation Between CTEEP Companhia and Banco Alfa
Can any of the company-specific risk be diversified away by investing in both CTEEP Companhia and Banco Alfa 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 CTEEP Companhia and Banco Alfa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CTEEP Companhia and Banco Alfa de, you can compare the effects of market volatilities on CTEEP Companhia and Banco Alfa 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 CTEEP Companhia with a short position of Banco Alfa. Check out your portfolio center. Please also check ongoing floating volatility patterns of CTEEP Companhia and Banco Alfa.
Diversification Opportunities for CTEEP Companhia and Banco Alfa
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CTEEP and Banco is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CTEEP Companhia and Banco Alfa de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Alfa de and CTEEP Companhia 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 CTEEP Companhia are associated (or correlated) with Banco Alfa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Alfa de has no effect on the direction of CTEEP Companhia i.e., CTEEP Companhia and Banco Alfa go up and down completely randomly.
Pair Corralation between CTEEP Companhia and Banco Alfa
If you would invest 2,410 in CTEEP Companhia on September 2, 2024 and sell it today you would earn a total of 6.00 from holding CTEEP Companhia or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CTEEP Companhia vs. Banco Alfa de
Performance |
| Timeline |
| CTEEP Companhia |
| Banco Alfa de |
CTEEP Companhia and Banco Alfa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CTEEP Companhia and Banco Alfa
The main advantage of trading using opposite CTEEP Companhia and Banco Alfa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CTEEP Companhia position performs unexpectedly, Banco Alfa 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 Alfa will offset losses from the drop in Banco Alfa's long position.| CTEEP Companhia vs. Transmissora Aliana de | CTEEP Companhia vs. Companhia Paranaense de | CTEEP Companhia vs. BB Seguridade Participacoes | CTEEP Companhia vs. Engie Brasil Energia |
| Banco Alfa vs. Banco do Brasil | Banco Alfa vs. Banco Bradesco SA | Banco Alfa vs. Petrleo Brasileiro SA | Banco Alfa vs. BB Seguridade Participacoes |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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