Correlation Between BANKINTER ADR and Intel
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR and Intel 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 Intel 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 Intel, you can compare the effects of market volatilities on BANKINTER ADR and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and Intel.
Diversification Opportunities for BANKINTER ADR and Intel
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANKINTER and Intel is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and Intel go up and down completely randomly.
Pair Corralation between BANKINTER ADR and Intel
Assuming the 90 days horizon BANKINTER ADR 2007 is expected to generate 0.75 times more return on investment than Intel. However, BANKINTER ADR 2007 is 1.34 times less risky than Intel. It trades about 0.16 of its potential returns per unit of risk. Intel is currently generating about -0.04 per unit of risk. If you would invest 735.00 in BANKINTER ADR 2007 on November 8, 2024 and sell it today you would earn a total of 50.00 from holding BANKINTER ADR 2007 or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANKINTER ADR 2007 vs. Intel
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| Intel |
BANKINTER ADR and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and Intel
The main advantage of trading using opposite BANKINTER ADR and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| BANKINTER ADR vs. SIDETRADE EO 1 | BANKINTER ADR vs. FAST RETAIL ADR | BANKINTER ADR vs. GAMING FAC SA | BANKINTER ADR vs. Hochschild Mining plc |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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