Correlation Between BANKINTER ADR and AXWAY SOFTWARE
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR and AXWAY SOFTWARE 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 BANKINTER ADR and AXWAY SOFTWARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BANKINTER ADR 2007 and AXWAY SOFTWARE EO, you can compare the effects of market volatilities on BANKINTER ADR and AXWAY SOFTWARE 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 BANKINTER ADR with a short position of AXWAY SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and AXWAY SOFTWARE.
Diversification Opportunities for BANKINTER ADR and AXWAY SOFTWARE
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANKINTER and AXWAY is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and AXWAY SOFTWARE EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXWAY SOFTWARE EO and BANKINTER ADR 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 BANKINTER ADR 2007 are associated (or correlated) with AXWAY SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXWAY SOFTWARE EO has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and AXWAY SOFTWARE go up and down completely randomly.
Pair Corralation between BANKINTER ADR and AXWAY SOFTWARE
Assuming the 90 days horizon BANKINTER ADR 2007 is expected to generate 1.52 times more return on investment than AXWAY SOFTWARE. However, BANKINTER ADR is 1.52 times more volatile than AXWAY SOFTWARE EO. It trades about 0.14 of its potential returns per unit of risk. AXWAY SOFTWARE EO is currently generating about -0.03 per unit of risk. If you would invest 694.00 in BANKINTER ADR 2007 on November 7, 2024 and sell it today you would earn a total of 106.00 from holding BANKINTER ADR 2007 or generate 15.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANKINTER ADR 2007 vs. AXWAY SOFTWARE EO
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| AXWAY SOFTWARE EO |
BANKINTER ADR and AXWAY SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and AXWAY SOFTWARE
The main advantage of trading using opposite BANKINTER ADR and AXWAY SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, AXWAY SOFTWARE 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 AXWAY SOFTWARE will offset losses from the drop in AXWAY SOFTWARE's long position.| BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc |
| AXWAY SOFTWARE vs. GameStop Corp | AXWAY SOFTWARE vs. Scientific Games | AXWAY SOFTWARE vs. DETALION GAMES SA | AXWAY SOFTWARE vs. GAMING FAC 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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