Correlation Between Borges Agricultural and Bankinter
Can any of the company-specific risk be diversified away by investing in both Borges Agricultural 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 Borges Agricultural and Bankinter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borges Agricultural Industrial and Bankinter, you can compare the effects of market volatilities on Borges Agricultural 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 Borges Agricultural with a short position of Bankinter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borges Agricultural and Bankinter.
Diversification Opportunities for Borges Agricultural and Bankinter
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Borges and Bankinter is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Borges Agricultural Industrial and Bankinter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bankinter and Borges Agricultural 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 Borges Agricultural Industrial 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 Borges Agricultural i.e., Borges Agricultural and Bankinter go up and down completely randomly.
Pair Corralation between Borges Agricultural and Bankinter
Assuming the 90 days trading horizon Borges Agricultural is expected to generate 412.83 times less return on investment than Bankinter. But when comparing it to its historical volatility, Borges Agricultural Industrial is 4.28 times less risky than Bankinter. It trades about 0.0 of its potential returns per unit of risk. Bankinter is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 710.00 in Bankinter on October 26, 2024 and sell it today you would earn a total of 110.00 from holding Bankinter or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borges Agricultural Industrial vs. Bankinter
Performance |
| Timeline |
| Borges Agricultural |
| Bankinter |
Borges Agricultural and Bankinter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borges Agricultural and Bankinter
The main advantage of trading using opposite Borges Agricultural and Bankinter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borges Agricultural 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.| Borges Agricultural vs. Millenium Hotels Real | Borges Agricultural vs. Home Capital Rentals | Borges Agricultural vs. Media Investment Optimization | Borges Agricultural vs. Tier1 Technology SA |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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