Correlation Between Aperam SA and Bankinter
Can any of the company-specific risk be diversified away by investing in both Aperam SA and Bankinter 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 Aperam SA and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aperam SA and Bankinter, you can compare the effects of market volatilities on Aperam SA and Bankinter 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 Aperam SA with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aperam SA and Bankinter.
Diversification Opportunities for Aperam SA and Bankinter
Very good diversification
The 3 months correlation between Aperam and Bankinter is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aperam SA and Bankinter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter and Aperam SA 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 Aperam SA are associated (or correlated) with Bankinter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bankinter has no effect on the direction of Aperam SA i.e., Aperam SA and Bankinter go up and down completely randomly.
Pair Corralation between Aperam SA and Bankinter
Assuming the 90 days trading horizon Aperam SA is expected to generate 1.11 times more return on investment than Bankinter. However, Aperam SA is 1.11 times more volatile than Bankinter. It trades about 0.22 of its potential returns per unit of risk. Bankinter is currently generating about 0.09 per unit of risk. If you would invest 2,471 in Aperam SA on August 31, 2024 and sell it today you would earn a total of 253.00 from holding Aperam SA or generate 10.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aperam SA vs. Bankinter
Performance |
| Timeline |
| Aperam SA |
| Bankinter |
Aperam SA and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aperam SA and Bankinter
The main advantage of trading using opposite Aperam SA and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aperam SA position performs unexpectedly, Bankinter 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 will offset losses from the drop in Bankinter's long position.| Aperam SA vs. Home Capital Rentals | Aperam SA vs. Plasticos Compuestos SA | Aperam SA vs. Technomeca Aerospace SA | Aperam SA vs. Borges Agricultural Industrial |
| Bankinter vs. Banco de Sabadell | Bankinter vs. Caixabank SA | Bankinter vs. Acerinox | Bankinter vs. ACS Actividades de |
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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