Correlation Between Banco Bradesco and Intel Corp

Can any of the company-specific risk be diversified away by investing in both Banco Bradesco and Intel Corp 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 Intel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Banco Bradesco DRC and Intel Corp CEDEAR, you can compare the effects of market volatilities on Banco Bradesco and Intel Corp 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 Intel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banco Bradesco and Intel Corp.

Diversification Opportunities for Banco Bradesco and Intel Corp

0.67

Correlation Coefficient

Banco Bradesco  Intel Corp

Poor diversification

The 3 months correlation between Banco and Intel is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Banco Bradesco DRC and Intel Corp CEDEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel Corp CEDEAR 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 DRC are associated (or correlated) with Intel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel Corp CEDEAR has no effect on the direction of Banco Bradesco i.e., Banco Bradesco and Intel Corp go up and down completely randomly.

Pair Corralation between Banco Bradesco and Intel Corp

Assuming the 90 days trading horizon Banco Bradesco DRC is expected to generate 1.09 times more return on investment than Intel Corp. However, Banco Bradesco is 1.09 times more volatile than Intel Corp CEDEAR. It trades about 0.14 of its potential returns per unit of risk. Intel Corp CEDEAR is currently generating about 0.09 per unit of risk. If you would invest  285,000  in Banco Bradesco DRC on April 24, 2025 and sell it today you would earn a total of  67,500  from holding Banco Bradesco DRC or generate 23.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Banco Bradesco DRC  vs.  Intel Corp CEDEAR

Banco Bradesco DRC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Banco Bradesco DRC are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Banco Bradesco sustained solid returns over the last few months and may actually be approaching a breakup point.

Intel Corp CEDEAR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intel Corp CEDEAR are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intel Corp sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Banco Bradesco and Intel Corp

The main advantage of trading using opposite Banco Bradesco and Intel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banco Bradesco position performs unexpectedly, Intel Corp 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 Intel Corp will offset losses from the drop in Intel Corp's long position.

The idea behind Banco Bradesco DRC and Intel Corp CEDEAR 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.