Correlation Between BANKINTER ADR and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR and Ramsay Health 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 Ramsay Health 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 Ramsay Health Care, you can compare the effects of market volatilities on BANKINTER ADR and Ramsay Health 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 Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and Ramsay Health.
Diversification Opportunities for BANKINTER ADR and Ramsay Health
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BANKINTER and Ramsay is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care 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 Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and Ramsay Health go up and down completely randomly.
Pair Corralation between BANKINTER ADR and Ramsay Health
Assuming the 90 days horizon BANKINTER ADR 2007 is expected to generate 1.36 times more return on investment than Ramsay Health. However, BANKINTER ADR is 1.36 times more volatile than Ramsay Health Care. It trades about 0.04 of its potential returns per unit of risk. Ramsay Health Care is currently generating about -0.07 per unit of risk. If you would invest 506.00 in BANKINTER ADR 2007 on September 23, 2024 and sell it today you would earn a total of 214.00 from holding BANKINTER ADR 2007 or generate 42.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BANKINTER ADR 2007 vs. Ramsay Health Care
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| Ramsay Health Care |
BANKINTER ADR and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and Ramsay Health
The main advantage of trading using opposite BANKINTER ADR and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, Ramsay Health 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| BANKINTER ADR vs. American Homes 4 | BANKINTER ADR vs. Autohome ADR | BANKINTER ADR vs. bet at home AG | BANKINTER ADR vs. GAMING FAC SA |
| Ramsay Health vs. KOOL2PLAY SA ZY | Ramsay Health vs. BANKINTER ADR 2007 | Ramsay Health vs. OAKTRSPECLENDNEW | Ramsay Health vs. The Hanover Insurance |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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