Correlation Between BANKINTER ADR and AXA SA
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR and AXA SA 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 AXA SA 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 AXA SA, you can compare the effects of market volatilities on BANKINTER ADR and AXA SA 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 AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and AXA SA.
Diversification Opportunities for BANKINTER ADR and AXA SA
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BANKINTER and AXA is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA 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 AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and AXA SA go up and down completely randomly.
Pair Corralation between BANKINTER ADR and AXA SA
Assuming the 90 days horizon BANKINTER ADR 2007 is expected to generate 1.52 times more return on investment than AXA SA. However, BANKINTER ADR is 1.52 times more volatile than AXA SA. It trades about 0.04 of its potential returns per unit of risk. AXA SA is currently generating about -0.18 per unit of risk. If you would invest 703.00 in BANKINTER ADR 2007 on September 5, 2024 and sell it today you would earn a total of 12.00 from holding BANKINTER ADR 2007 or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BANKINTER ADR 2007 vs. AXA SA
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| AXA SA |
BANKINTER ADR and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and AXA SA
The main advantage of trading using opposite BANKINTER ADR and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, AXA SA 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 AXA SA will offset losses from the drop in AXA SA's long position.| BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc |
| AXA SA vs. The Hanover Insurance | AXA SA vs. PT Bank Maybank | AXA SA vs. Nok Airlines PCL | AXA SA vs. BANKINTER ADR 2007 |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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