Correlation Between Banco Bradesco and West Shore
Can any of the company-specific risk be diversified away by investing in both Banco Bradesco and West Shore 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 Banco Bradesco and West Shore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banco Bradesco SA and West Shore Bank, you can compare the effects of market volatilities on Banco Bradesco and West Shore 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 Banco Bradesco with a short position of West Shore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Bradesco and West Shore.
Diversification Opportunities for Banco Bradesco and West Shore
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Banco and West is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bradesco SA and West Shore Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on West Shore Bank and Banco Bradesco 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 Banco Bradesco SA are associated (or correlated) with West Shore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of West Shore Bank has no effect on the direction of Banco Bradesco i.e., Banco Bradesco and West Shore go up and down completely randomly.
Pair Corralation between Banco Bradesco and West Shore
Considering the 90-day investment horizon Banco Bradesco SA is expected to under-perform the West Shore. In addition to that, Banco Bradesco is 2.22 times more volatile than West Shore Bank. It trades about -0.32 of its total potential returns per unit of risk. West Shore Bank is currently generating about 0.22 per unit of volatility. If you would invest 2,380 in West Shore Bank on September 23, 2024 and sell it today you would earn a total of 145.00 from holding West Shore Bank or generate 6.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Banco Bradesco SA vs. West Shore Bank
Performance |
Timeline |
Banco Bradesco SA |
West Shore Bank |
Banco Bradesco and West Shore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Banco Bradesco and West Shore
The main advantage of trading using opposite Banco Bradesco and West Shore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Bradesco position performs unexpectedly, West Shore 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 West Shore will offset losses from the drop in West Shore's long position.Banco Bradesco vs. Shinhan Financial Group | Banco Bradesco vs. Banco De Chile | Banco Bradesco vs. Orix Corp Ads | Banco Bradesco vs. SK Telecom Co |
West Shore vs. Banco Bradesco SA | West Shore vs. Itau Unibanco Banco | West Shore vs. Lloyds Banking Group | West Shore vs. Deutsche Bank AG |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |