Correlation Between BANKINTER ADR and ATT
Can any of the company-specific risk be diversified away by investing in both BANKINTER ADR and ATT 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 ATT 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 ATT Inc, you can compare the effects of market volatilities on BANKINTER ADR and ATT 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 ATT. Check out your portfolio center. Please also check ongoing floating volatility patterns of BANKINTER ADR and ATT.
Diversification Opportunities for BANKINTER ADR and ATT
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BANKINTER and ATT is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding BANKINTER ADR 2007 and ATT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATT Inc 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 ATT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATT Inc has no effect on the direction of BANKINTER ADR i.e., BANKINTER ADR and ATT go up and down completely randomly.
Pair Corralation between BANKINTER ADR and ATT
Assuming the 90 days horizon BANKINTER ADR is expected to generate 2.44 times less return on investment than ATT. In addition to that, BANKINTER ADR is 1.45 times more volatile than ATT Inc. It trades about 0.07 of its total potential returns per unit of risk. ATT Inc is currently generating about 0.26 per unit of volatility. If you would invest 2,034 in ATT Inc on August 29, 2024 and sell it today you would earn a total of 169.00 from holding ATT Inc or generate 8.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BANKINTER ADR 2007 vs. ATT Inc
Performance |
| Timeline |
| BANKINTER ADR 2007 |
| ATT Inc |
BANKINTER ADR and ATT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BANKINTER ADR and ATT
The main advantage of trading using opposite BANKINTER ADR and ATT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BANKINTER ADR position performs unexpectedly, ATT 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 ATT will offset losses from the drop in ATT's long position.| BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc | BANKINTER ADR vs. Apple Inc |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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