Correlation Between Brp and SVB Financial

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

Diversification Opportunities for Brp and SVB Financial

-0.33
  Correlation Coefficient
 Brp

Very good diversification

The 1 month correlation between Brp and SVB is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Brp Group and SVB Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVB Financial Group and Brp 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 Brp Group are associated (or correlated) with SVB Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVB Financial Group has no effect on the direction of Brp i.e., Brp and SVB Financial go up and down completely randomly.

Pair Corralation between Brp and SVB Financial

Considering the 90-day investment horizon Brp Group is expected to generate 0.2 times more return on investment than SVB Financial. However, Brp Group is 4.99 times less risky than SVB Financial. It trades about 0.03 of its potential returns per unit of risk. SVB Financial Group is currently generating about -0.01 per unit of risk. If you would invest  2,674  in Brp Group on March 6, 2024 and sell it today you would earn a total of  592.00  from holding Brp Group or generate 22.14% return on investment over 90 days.
Time Period1 Month [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy44.12%
ValuesDaily Returns

Brp Group  vs.  SVB Financial Group

 Performance 
       Timeline  
Brp Group 

Risk-Adjusted Performance

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Weak
 
Strong
Solid
Over the last 90 days Brp Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively fragile basic indicators, Brp reported solid returns over the last few months and may actually be approaching a breakup point.
SVB Financial Group 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SVB Financial Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SVB Financial is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Brp and SVB Financial Volatility Contrast

   Predicted Return Density   
       Returns  
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