Correlation Between Banco Bradesco and Positivo Tecnologia

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Banco Bradesco and Positivo Tecnologia 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 Positivo Tecnologia 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 Positivo Tecnologia SA, you can compare the effects of market volatilities on Banco Bradesco and Positivo Tecnologia 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 Positivo Tecnologia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Bradesco and Positivo Tecnologia.

Diversification Opportunities for Banco Bradesco and Positivo Tecnologia

0.95
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Banco and Positivo is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bradesco SA and Positivo Tecnologia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Positivo Tecnologia 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 Positivo Tecnologia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Positivo Tecnologia has no effect on the direction of Banco Bradesco i.e., Banco Bradesco and Positivo Tecnologia go up and down completely randomly.

Pair Corralation between Banco Bradesco and Positivo Tecnologia

Assuming the 90 days trading horizon Banco Bradesco SA is expected to generate 0.38 times more return on investment than Positivo Tecnologia. However, Banco Bradesco SA is 2.6 times less risky than Positivo Tecnologia. It trades about -0.14 of its potential returns per unit of risk. Positivo Tecnologia SA is currently generating about -0.32 per unit of risk. If you would invest  1,533  in Banco Bradesco SA on September 10, 2022 and sell it today you would lose (78.00)  from holding Banco Bradesco SA or give up 5.09% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Banco Bradesco SA  vs.  Positivo Tecnologia SA

 Performance (%) 
       Timeline  
Banco Bradesco SA 
Banco Performance
0 of 100
Over the last 90 days Banco Bradesco SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Preferred Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2023. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Banco Price Channel

Positivo Tecnologia 
Positivo Performance
0 of 100
Over the last 90 days Positivo Tecnologia SA has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2023. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Positivo Price Channel

Banco Bradesco and Positivo Tecnologia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Banco Bradesco and Positivo Tecnologia

The main advantage of trading using opposite Banco Bradesco and Positivo Tecnologia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Bradesco position performs unexpectedly, Positivo Tecnologia 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 Positivo Tecnologia will offset losses from the drop in Positivo Tecnologia's long position.
Banco Bradesco vs. Alphabet
Banco Bradesco vs. Rumo SA
Banco Bradesco vs. Alibaba Group Holding
Banco Bradesco vs. Unipar Carbocloro SA
The idea behind Banco Bradesco SA and Positivo Tecnologia SA 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.
Positivo Tecnologia vs. Eneva SA
Positivo Tecnologia vs. JHSF Participaes SA
Positivo Tecnologia vs. WEG SA
Positivo Tecnologia vs. JS Real Estate
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go