Correlation Between Banco Bradesco and FirstSun Capital
Can any of the company-specific risk be diversified away by investing in both Banco Bradesco and FirstSun Capital 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 FirstSun Capital 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 FirstSun Capital Bancorp, you can compare the effects of market volatilities on Banco Bradesco and FirstSun Capital 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 FirstSun Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Bradesco and FirstSun Capital.
Diversification Opportunities for Banco Bradesco and FirstSun Capital
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Banco and FirstSun is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bradesco SA and FirstSun Capital Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstSun Capital Bancorp 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 FirstSun Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstSun Capital Bancorp has no effect on the direction of Banco Bradesco i.e., Banco Bradesco and FirstSun Capital go up and down completely randomly.
Pair Corralation between Banco Bradesco and FirstSun Capital
Assuming the 90 days trading horizon Banco Bradesco SA is expected to generate 0.48 times more return on investment than FirstSun Capital. However, Banco Bradesco SA is 2.08 times less risky than FirstSun Capital. It trades about 0.25 of its potential returns per unit of risk. FirstSun Capital Bancorp is currently generating about -0.09 per unit of risk. If you would invest 1,547 in Banco Bradesco SA on August 21, 2025 and sell it today you would earn a total of 362.00 from holding Banco Bradesco SA or generate 23.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Banco Bradesco SA vs. FirstSun Capital Bancorp
Performance |
| Timeline |
| Banco Bradesco SA |
| FirstSun Capital Bancorp |
Banco Bradesco and FirstSun Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Bradesco and FirstSun Capital
The main advantage of trading using opposite Banco Bradesco and FirstSun Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Bradesco position performs unexpectedly, FirstSun Capital 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 FirstSun Capital will offset losses from the drop in FirstSun Capital's long position.| Banco Bradesco vs. Banco Santander SA | Banco Bradesco vs. Banco do Brasil | Banco Bradesco vs. Itasa Investimentos | Banco Bradesco vs. Itasa Investimentos |
| FirstSun Capital vs. Tompkins Financial | FirstSun Capital vs. Old Second Bancorp | FirstSun Capital vs. Texas Capital Bancshares | FirstSun Capital vs. Burke Herbert Financial |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |