Correlation Between Alfa Financial and BANKINTER ADR
Can any of the company-specific risk be diversified away by investing in both Alfa Financial 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 Alfa Financial and BANKINTER ADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfa Financial Software and BANKINTER ADR 2007, you can compare the effects of market volatilities on Alfa Financial 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 Alfa Financial with a short position of BANKINTER ADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and BANKINTER ADR.
Diversification Opportunities for Alfa Financial and BANKINTER ADR
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alfa and BANKINTER is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software 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 Alfa Financial 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 Alfa Financial Software 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 Alfa Financial i.e., Alfa Financial and BANKINTER ADR go up and down completely randomly.
Pair Corralation between Alfa Financial and BANKINTER ADR
Assuming the 90 days trading horizon Alfa Financial Software is expected to under-perform the BANKINTER ADR. In addition to that, Alfa Financial is 1.38 times more volatile than BANKINTER ADR 2007. It trades about -0.42 of its total potential returns per unit of risk. BANKINTER ADR 2007 is currently generating about 0.04 per unit of volatility. If you would invest 730.00 in BANKINTER ADR 2007 on October 12, 2024 and sell it today you would earn a total of 5.00 from holding BANKINTER ADR 2007 or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfa Financial Software vs. BANKINTER ADR 2007
Performance |
| Timeline |
| Alfa Financial Software |
| BANKINTER ADR 2007 |
Alfa Financial and BANKINTER ADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfa Financial and BANKINTER ADR
The main advantage of trading using opposite Alfa Financial and BANKINTER ADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfa Financial 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.| Alfa Financial vs. Gruppo Mutuionline SpA | Alfa Financial vs. CompuGroup Medical SE | Alfa Financial vs. ZhongAn Online P | Alfa Financial vs. PULSION Medical Systems |
| BANKINTER ADR vs. INDO RAMA SYNTHETIC | BANKINTER ADR vs. Silicon Motion Technology | BANKINTER ADR vs. TIANDE CHEMICAL | BANKINTER ADR vs. KINGBOARD CHEMICAL |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |