Correlation Between BANKINTER ADR and EHEALTH
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR and EHEALTH 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 EHEALTH 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 EHEALTH, you can compare the effects of market volatilities on BANKINTER ADR and EHEALTH 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 EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and EHEALTH.
Diversification Opportunities for BANKINTER ADR and EHEALTH
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BANKINTER and EHEALTH is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH 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 EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and EHEALTH go up and down completely randomly.
Pair Corralation between BANKINTER ADR and EHEALTH
Assuming the 90 days horizon BANKINTER ADR 2007 is expected to generate 0.53 times more return on investment than EHEALTH. However, BANKINTER ADR 2007 is 1.89 times less risky than EHEALTH. It trades about 0.07 of its potential returns per unit of risk. EHEALTH is currently generating about 0.0 per unit of risk. If you would invest 495.00 in BANKINTER ADR 2007 on September 12, 2024 and sell it today you would earn a total of 250.00 from holding BANKINTER ADR 2007 or generate 50.51% 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. EHEALTH
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| EHEALTH |
BANKINTER ADR and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and EHEALTH
The main advantage of trading using opposite BANKINTER ADR and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH's long position.| BANKINTER ADR vs. Citic Telecom International | BANKINTER ADR vs. CHINA TELECOM H | BANKINTER ADR vs. American Homes 4 | BANKINTER ADR vs. Zoom Video Communications |
| EHEALTH vs. PREMIER FOODS | EHEALTH vs. Commonwealth Bank of | EHEALTH vs. ASSOC BR FOODS | EHEALTH vs. Thai Beverage Public |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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