Correlation Between BANKINTER ADR and Martifer SGPS
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR and Martifer SGPS 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 Martifer SGPS 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 Martifer SGPS SA, you can compare the effects of market volatilities on BANKINTER ADR and Martifer SGPS 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 Martifer SGPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and Martifer SGPS.
Diversification Opportunities for BANKINTER ADR and Martifer SGPS
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANKINTER and Martifer is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and Martifer SGPS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martifer SGPS 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 Martifer SGPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martifer SGPS SA has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and Martifer SGPS go up and down completely randomly.
Pair Corralation between BANKINTER ADR and Martifer SGPS
Assuming the 90 days horizon BANKINTER ADR is expected to generate 1.14 times less return on investment than Martifer SGPS. In addition to that, BANKINTER ADR is 1.04 times more volatile than Martifer SGPS SA. It trades about 0.04 of its total potential returns per unit of risk. Martifer SGPS SA is currently generating about 0.05 per unit of volatility. If you would invest 110.00 in Martifer SGPS SA on September 14, 2024 and sell it today you would earn a total of 64.00 from holding Martifer SGPS SA or generate 58.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
BANKINTER ADR 2007 vs. Martifer SGPS SA
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| Martifer SGPS SA |
BANKINTER ADR and Martifer SGPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and Martifer SGPS
The main advantage of trading using opposite BANKINTER ADR and Martifer SGPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, Martifer SGPS 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 Martifer SGPS will offset losses from the drop in Martifer SGPS's long position.| BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc |
| Martifer SGPS vs. Commonwealth Bank of | Martifer SGPS vs. Penta Ocean Construction Co | Martifer SGPS vs. TITAN MACHINERY | Martifer SGPS 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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