Correlation Between BANKINTER ADR and PT Bank
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR and PT Bank 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 PT Bank 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 PT Bank Maybank, you can compare the effects of market volatilities on BANKINTER ADR and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and PT Bank.
Diversification Opportunities for BANKINTER ADR and PT Bank
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BANKINTER and BOZA is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and PT Bank Maybank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Maybank 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Maybank has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and PT Bank go up and down completely randomly.
Pair Corralation between BANKINTER ADR and PT Bank
Assuming the 90 days horizon BANKINTER ADR 2007 is expected to generate 0.49 times more return on investment than PT Bank. However, BANKINTER ADR 2007 is 2.05 times less risky than PT Bank. It trades about 0.05 of its potential returns per unit of risk. PT Bank Maybank is currently generating about 0.02 per unit of risk. If you would invest 486.00 in BANKINTER ADR 2007 on August 30, 2024 and sell it today you would earn a total of 239.00 from holding BANKINTER ADR 2007 or generate 49.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANKINTER ADR 2007 vs. PT Bank Maybank
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| PT Bank Maybank |
BANKINTER ADR and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and PT Bank
The main advantage of trading using opposite BANKINTER ADR and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc |
| PT Bank vs. Stewart Information Services | PT Bank vs. MOVIE GAMES SA | PT Bank vs. UNIVMUSIC GRPADR050 | PT Bank vs. DATAGROUP SE |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |