Correlation Between Horizon Bancorp and BRASIL ON

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

Diversification Opportunities for Horizon Bancorp and BRASIL ON

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Horizon and BRASIL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Horizon Bancorp Inc and BRASIL ON NM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRASIL ON NM and Horizon Bancorp 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 Horizon Bancorp are associated (or correlated) with BRASIL ON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRASIL ON NM has no effect on the direction of Horizon Bancorp i.e., Horizon Bancorp and BRASIL ON go up and down completely randomly.

Pair Corralation between Horizon Bancorp and BRASIL ON

If you would invest (100.00)  in Horizon Bancorp on March 28, 2022 and sell it today you would earn a total of  100.00  from holding Horizon Bancorp or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Horizon Bancorp Inc  vs.  BRASIL ON NM

 Performance (%) 
      Timeline 
Horizon Bancorp 
Horizon Performance
0 of 100
Over the last 90 days Horizon Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Horizon Bancorp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
BRASIL ON NM 
BRASIL Performance
0 of 100
Over the last 90 days BRASIL ON NM has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, BRASIL ON is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

BRASIL Price Channel

Horizon Bancorp and BRASIL ON Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Horizon Bancorp and BRASIL ON

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

Horizon Bancorp

Pair trading matchups for Horizon Bancorp

Cincinnati Financial vs. Horizon Bancorp
Micron Technology vs. Horizon Bancorp
Conagra Brands vs. Horizon Bancorp
Teucrium Corn vs. Horizon Bancorp
Northrop Grumman vs. Horizon Bancorp
Verizon Communications vs. Horizon Bancorp
Chevron Corp vs. Horizon Bancorp
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Horizon Bancorp as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Horizon Bancorp's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Horizon Bancorp's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Horizon Bancorp.
The idea behind Horizon Bancorp and BRASIL ON NM 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.

BRASIL ON NM

Pair trading matchups for BRASIL ON

Teucrium Corn vs. BRASIL ON
Home Depot vs. BRASIL ON
Chevron Corp vs. BRASIL ON
Conagra Brands vs. BRASIL ON
Merck vs. BRASIL ON
Verizon Communications vs. BRASIL ON
Micron Technology vs. BRASIL ON
Macroaxis vs. BRASIL ON
Cincinnati Financial vs. BRASIL ON
Northrop Grumman vs. BRASIL ON
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against BRASIL ON as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. BRASIL ON's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, BRASIL ON's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to BRASIL ON NM.
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

Other Complementary Tools

Transaction History
View history of all your transactions and understand their impact on performance
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go