Correlation Between TOWNSQUARE MEDIA and BANKINTER ADR
Can any of the company-specific risk be diversified away by investing in both TOWNSQUARE MEDIA and BANKINTER ADR 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 TOWNSQUARE MEDIA and BANKINTER ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOWNSQUARE MEDIA INC and BANKINTER ADR 2007, you can compare the effects of market volatilities on TOWNSQUARE MEDIA and BANKINTER ADR 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 TOWNSQUARE MEDIA with a short position of BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOWNSQUARE MEDIA and BANKINTER ADR.
Diversification Opportunities for TOWNSQUARE MEDIA and BANKINTER ADR
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between TOWNSQUARE and BANKINTER is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding TOWNSQUARE MEDIA INC and BANKINTER ADR 2007 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANKINTER ADR 2007 and TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA INC are associated (or correlated) with BANKINTER ADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANKINTER ADR 2007 has no effect on the direction of TOWNSQUARE MEDIA i.e., TOWNSQUARE MEDIA and BANKINTER ADR go up and down completely randomly.
Pair Corralation between TOWNSQUARE MEDIA and BANKINTER ADR
Assuming the 90 days trading horizon TOWNSQUARE MEDIA INC is expected to under-perform the BANKINTER ADR. In addition to that, TOWNSQUARE MEDIA is 1.89 times more volatile than BANKINTER ADR 2007. It trades about -0.03 of its total potential returns per unit of risk. BANKINTER ADR 2007 is currently generating about 0.36 per unit of volatility. If you would invest 715.00 in BANKINTER ADR 2007 on October 28, 2024 and sell it today you would earn a total of 75.00 from holding BANKINTER ADR 2007 or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOWNSQUARE MEDIA INC vs. BANKINTER ADR 2007
Performance |
| Timeline |
| TOWNSQUARE MEDIA INC |
| BANKINTER ADR 2007 |
TOWNSQUARE MEDIA and BANKINTER ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOWNSQUARE MEDIA and BANKINTER ADR
The main advantage of trading using opposite TOWNSQUARE MEDIA and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOWNSQUARE MEDIA position performs unexpectedly, BANKINTER ADR 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 BANKINTER ADR will offset losses from the drop in BANKINTER ADR's long position.| TOWNSQUARE MEDIA vs. Preferred Bank | TOWNSQUARE MEDIA vs. Eurasia Mining Plc | TOWNSQUARE MEDIA vs. BIOPHARMA CREDIT DL | TOWNSQUARE MEDIA vs. Regions Financial |
| BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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