Correlation Between Banco Bradesco and WesBanco
Can any of the company-specific risk be diversified away by investing in both Banco Bradesco and WesBanco 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 WesBanco 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 WesBanco, you can compare the effects of market volatilities on Banco Bradesco and WesBanco 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 WesBanco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Bradesco and WesBanco.
Diversification Opportunities for Banco Bradesco and WesBanco
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Banco and WesBanco is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bradesco SA and WesBanco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WesBanco 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 WesBanco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WesBanco has no effect on the direction of Banco Bradesco i.e., Banco Bradesco and WesBanco go up and down completely randomly.
Pair Corralation between Banco Bradesco and WesBanco
Assuming the 90 days trading horizon Banco Bradesco SA is expected to generate 25.9 times more return on investment than WesBanco. However, Banco Bradesco is 25.9 times more volatile than WesBanco. It trades about 0.2 of its potential returns per unit of risk. WesBanco is currently generating about 0.34 per unit of risk. If you would invest 1,649 in Banco Bradesco SA on September 4, 2025 and sell it today you would earn a total of 305.00 from holding Banco Bradesco SA or generate 18.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 92.06% |
| Values | Daily Returns |
Banco Bradesco SA vs. WesBanco
Performance |
| Timeline |
| Banco Bradesco SA |
| WesBanco |
Risk-Adjusted Performance
Strong
Weak | Strong |
Banco Bradesco and WesBanco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banco Bradesco and WesBanco
The main advantage of trading using opposite Banco Bradesco and WesBanco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Bradesco position performs unexpectedly, WesBanco 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 WesBanco will offset losses from the drop in WesBanco's long position.| Banco Bradesco vs. Unity Software | Banco Bradesco vs. New Oriental Education | Banco Bradesco vs. Molson Coors Beverage | Banco Bradesco vs. Paycom Software |
| WesBanco vs. Avistar Communications Corp | WesBanco vs. Gamma Communications plc | WesBanco vs. Motorcar Parts of | WesBanco vs. NorthPoint Communications Group |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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