Correlation Between BRASIL ON and Howard Bancorp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both BRASIL ON and Howard Bancorp 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 BRASIL ON and Howard Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRASIL ON NM and Howard Bancorp, you can compare the effects of market volatilities on BRASIL ON and Howard Bancorp 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 BRASIL ON with a short position of Howard Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRASIL ON and Howard Bancorp.

Diversification Opportunities for BRASIL ON and Howard Bancorp

0.27
  Correlation Coefficient

Modest diversification

The 3 months correlation between BRASIL and Howard is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding BRASIL ON NM and Howard Bancorp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Howard Bancorp and BRASIL ON 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 BRASIL ON NM are associated (or correlated) with Howard Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Howard Bancorp has no effect on the direction of BRASIL ON i.e., BRASIL ON and Howard Bancorp go up and down completely randomly.

Pair Corralation between BRASIL ON and Howard Bancorp

Assuming the 90 days trading horizon BRASIL ON is expected to generate 1.11 times less return on investment than Howard Bancorp. But when comparing it to its historical volatility, BRASIL ON NM is 1.0 times less risky than Howard Bancorp. It trades about 0.09 of its potential returns per unit of risk. Howard Bancorp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,028  in Howard Bancorp on June 27, 2022 and sell it today you would earn a total of  302.00  from holding Howard Bancorp or generate 14.89% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy32.79%
ValuesDaily Returns

BRASIL ON NM  vs.  Howard Bancorp Inc

 Performance (%) 
       Timeline  
BRASIL ON NM 
BRASIL Performance
14 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in BRASIL ON NM are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, BRASIL ON reported solid returns over the last few months and may actually be approaching a breakup point.

BRASIL Price Channel

Howard Bancorp 
Howard Performance
0 of 100
Over the last 90 days Howard Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Howard Bancorp is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.

BRASIL ON and Howard Bancorp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BRASIL ON and Howard Bancorp

The main advantage of trading using opposite BRASIL ON and Howard Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRASIL ON position performs unexpectedly, Howard Bancorp 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 Howard Bancorp will offset losses from the drop in Howard Bancorp's long position.
BRASIL ON vs. ENERGIAS BR ON
BRASIL ON vs. ENEVA ON NM
BRASIL ON vs. CEMIG ON N1
BRASIL ON vs. CEMIG PN N1
The idea behind BRASIL ON NM and Howard Bancorp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Howard Bancorp vs. Sigma Lithium Corp
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go